BEST PART OF THE Q1 REPORT:
The March 2015 12% Convertible Notes, you will recall, provided cash of $13,000,000. ECIG also gave up warrants in the amount of 226,562,239 Warrants (pre-split) or 18,428,317 warrants post-split. ECIG, if they paid back the Notes within 30 days were entitled to a 50% reduction in the warrants given.
Remember how this issue was debated over and over on this board? How some said there was no way the Note was repaid in time and no way that the warrants were reduced by 50%....
Oh, the drama that played out, with some stating that ECIG would follow its past practice of underdelivering and hiding and obfuscating.
Well, check this out, from the top of page 47 of today's 10-Q:
Subsequent Events. On April 27, 2015, the March 12% Convertible Notes were repaid in full, and the warrants were cancelled.
That's right boys and girls - the warrants that provoked fits of hysteria - the ones that would be an albatross around ECIG's neck, that would never be repaid to allow for a 50% reduction, were actually CANCELLED. A 100% REDUCTION.
That's important. There is more than meets the eye. My take is the holders of the 3 year $41 Million term loan that got all the warrants were also the 12% Noteholders, and they agreed to forfeit the earlier warrants.
Millstone
AI
