Here is my honest and sincere opinion;
Let me start by saying that I never saw this coming. To propose both a reverse split and a doubling of the Authorized, is irresponsible and in my opinion completely unwarranted. As for words of encouragement this is all I can offer:
1) Is it possible that the CEO is bluffing, in an attempt to get these conversions out of the way more expeditiously? I think I have proven that the debt for equity people cannot convert below .07. Today's out of left field announcement caused understandable negative sentiment and a throwing in of the towel by some, violating the .07 threshold necessary to convert the debt. Since I also believe, and I know this kind of thing goes on, that the converters are going to be applying pressure to the shorts to buoy the stock back up, so that they may continue their conversions?
I offer for your consideration the intentional omissions of exact dates related to owning the stock and having proxy votes. Today's announcement only says by January--, 2015. Why would they not key in a date? Secondly, they repeated this omission when announcing the shareholder special meeting date simply as February--, 2015. How could they not know when these two events will occur, considering next week puts us half way through January? In all of my years investing I HAVE NEVER SEEN THAT.
Could this be a ploy by ECIG management to rip the proverbial bandaid off all at once. Believe me, I know it is a stretch, but it is plausible. I have been pondering all of the possible scenarios that could be happening behind the scenes, but admittedly, I am not sure.
I think the shorts by bracketing this stock right at the Mason-Dixon line is going to prove to be a possible problem for them. If the converters, working in tandem with the shorts, need .07 at a minimum to dump their shares, then just maybe, tonight the shorts and converters are in crisis mode.
2) Another plausible scenario is that the proposed raising of the A/S is their expedited way of ratifying the much ballyhooed poison pill. Having 600 million A/S would require a company attempting a hostile take over to amass 300+ million shares in order to garner the 51% controlling interest stake. That would be daunting to even the deepest of pocketed suitors.
I just cannot see how a company generating so much revenue needs to take such drastic measures. If we were in June/July and the share price was say $1.00+, and they wanted to uplist to the NASDAQ, then I could understand it.
Being honest, as I always am, today's news is troubling, yet I feel there is some kind of chess match going on between ECIG management, the converters and by virtue of extension, the shorts as well. It is a shot in the dark, but plausible.
I shall be contemplating all possible scenarios, in an attempt to fully comprehend what is going on here.
I can only state definitively that I am staying in this stock, and will continue to delve deeper into what is really happening.
One thing is for sure, and maybe this will provide some comfort: Since, as previously stated, the company omitted the two relevant dates, the absolute most shares the company can issue is 300 million. Have to believe that the CEO is cognizant of this fact, thus we have a finite number of shares, until such time as the shareholder's meeting occurs, so the selling will have to abate relatively soon.
Regards,
SPORTYNORTY
