Electronic Cigarettes International Group Ltd fka ECIGQ

[MasDinero]

Over the past two fiscal years, the Company has relied on debt and equity financings to fund its acquisitions and negative operating cash flows. As of March 31, 2016, convertible debt in the aggregate principal balance of $19,457,000 matures during the third quarter of 2016. If the market price of the Company’s common stock does NOT increase above the conversion prices that range between $0.45 and $0.75 per share, the conversion options will not be exercised by the holders and the Company will be required to seek additional financing to retire the debt or renegotiate an extended due date, of which there can be no assurance that either tactic will be successful. Even if the market price of the Company’s common stock is higher than the conversion price, there is no assurance that holders will convert which would require the Company to pay cash. On September 30, 2015, the Company entered into a Forbearance Agreement with a major term loan lender since the Company did not have adequate capital resources to satisfy the payment of $1,251,000 of accrued interest. As of April 1, 2016, the Company was delinquent in making an aggregate of $2,373,000 of interest payments on its outstanding debt. As a result of these and other factors, the Company’s capital resources may be insufficient to enable the execution of its global business plan in the near term. These and other conditions create ongoing substantial doubt about the Company’s ability to meet its financial obligations and to continue operating as a going concern in the normal course of business.