Electronic Cigarettes International Group Ltd fka ECIGQ

[roby117]

This seems to be a sweet laced deal ... but it seems to be too sweet to be true..

can someone share what are the downsides of this deal ...let us know even the extreme of situations that will have a impact in future

One I think of is that though company gave a reason for R/s was to prevent hostile takeover.. but in my opinion they really played into the hands of big players ..
Today they sold nearly 350 mn ( 125 + 226) shares as warrants at .03 . Post R/s of 1:10, this will amount to nearly 35 mn shares from a pool of 300 mn
When big tobaco company will try to take over ECIG the big tobaco company will use these 35 mn to drive the prices down so as to given a lower price to the retail investors like us
In my opinion this institutional investor is also a proxy for some big company

all experts please add any extreme or edge cases where retail investor can get harmed in someway so there bet on this stock becomes an educated known risk rather than some unknown risk

Regards
Roby