If you look at where Brent came from he has obviously been influenced by Wal Marts growth strategy to a degree. Phenomenal growth, distribution. The problem stems from acquisitions made in such a rapid fire manner causing a stressed cash flow. Wal Mart's advantage is that when they open a new store their vendors pay for the opening inventory. In Brent's case he was purchasing companies that I am sure the inventory was part of the purchase price. He was banking on the uplist, it failed thus the toxic financing. However, those acquisitions just did not go away, they are also part of the increased sales, and distribution network, which makes ECIG much more lucrative. It's a balancing act when a company goes after so many markets at one time, cash flow, financing, must go hand in hand with new markets. I have no problem believing that Oneill is right on track with getting the financing part righted, although working against a stacked deck for now. Will be interesting to get some guidance on projected sales numbers for 2015 and see just how much revenue will be created from their market/ product expansion.
When a company is in such a rapid growth mode it is difficult to show a profit. Wal Mart didn't for several years, I am told. Their rapid expansion helped them via tax deductions on new stores, so the money saved in taxes helped to finance store startups.
I see Brent's philosophy being very similar, the team that they have assembled is very impressive with Brent's marketing strategies, and Oneill's ability to restructure debt and run a lean company.
