Replies to post #40490 on Electronic Cigarettes International Group Ltd fka

[yerboss]

No. The RS and increase in AS are separate. Dan isn't even asking for the AS increase to be approved. According to him he doesn't need it as long as the RS is approved. He said that resolution was a carry over from the old CFO and Brent.

I expect the RS will pass and that the ratio will, hopefully, be between 5:1 and 10:1. Even a 5:1 RS would roll the OS down to 60 million, leaving a more than adequate 240 million shares to issue for financings and acquisitions.

The RS will have the added benefit of forcing all the shorts to cover since all shares have to be delivered to the TA to be exchanged for the new (post RS) shares.

If it also helps us get above $3 and we get the NASDAQ listing we will be in a very enviable place. Many institutions cannot buy stock below $5 so that should be a medium term goal. In addition if we list on NASDAQ all NASDAQ index funds have to buy and hold ECIG stock.

The ECIG world looks very bright for us down here with nothing but upside ahead towartd the march 10th vote count.

[ChuckBits]

I've probably read 99% of all posts here for the past 3 months (really). That's why I was surprised to see your support for the AS and not the RS, without understanding the result of the RS, until now. I'm NOT trying to sound judgemental, I appreciate your "level headed" opinions!

Assuming 300mil authorized AND outstanding today, and a 1 for 10 RS, the AS stays at 300 mil but the OS would be 30 mil, leaving 270 mil "available".

From the DEF 14A:

The number of authorized shares and the par value of Common Stock will not be affected. The following chart depicts the capitalization structure of the Company, assuming an Exchange Ratio of 1-to-10, both pre- and post-split (the post-split issued shares may differ slightly based on the number of fractional shares), but does not include the effects of Proposal #2, regarding the increase of Authorized Shares:

Pre-Reverse Stock Split

Authorized Shares Issued Shares Authorized but Unissued
300,000,000 246,398,668 53,601,332

Post-Reverse Stock Split

Authorized Shares Issued Shares Authorized but Unissued
300,000,000 24,639,867 275,360,133


Sorry the copy/paste mushes the numbers a bit, but you can see the "authorized but unissued" result, as of 1/26/15 above...