Replies to post #41313 on Electronic Cigarettes International Group Ltd fka

[lollybella]

So basically, it sounds like you got no real POSITIVE new information?

[niczar]

Overall sounds like a discouraging conversation. Really not following any of the thoughts that many on this board believe. JMO

[gc2]

IMO your conversation w/rep. was positive. #1 he can't even hint solid info wo blowing the proxy vote out of the water and be slammed with insider issues. Period. I like the chuckle response when asked about Atlantic. That tells you mucho. But thanks for sharing.

[Mac2014]

Thank you very much for asking.

I've always intended to hold for a long time. Sounds like that is the best course of action at the moment.

[Mac2014]

Thank you very much for asking.

I've always intended to hold for a long time. Sounds like that is the best course of action at the moment.

[stayfocused]

Many thanks for your take on the discussion. GLTUA @ ECIG :-)

[BurningMan]

Sounds like great stuff ... Something solid ahead of us no doubt !

[The_Free_Nebula]

Sound like a reverse split to immediately sell more shares....doesn't sound to good...I'd rather them simply raise the a/s

[rayinbrooklyn65]

ECIG: Thank you, Chuck, for taking the time to draft and e-mail to probe company management about some very important issues that have been on our collective minds. In keeping with appropriate SEC/FINRA guidelines so as not to disclose any information that would be considered "insider information", your conversation with Don from the company's investor relations department went about as expected; he could not provide affirmative responses that would divulge any solid details and lock the company into a specific statement before any of the details were settled.

Some positive takeaways from your conversation I have are as follows:

1. The company is attentive and responsive to its shareholders. Your e-mail was received, read, and acted upon expeditiously by Dan O'Neill, one of ECIG's executive managers. It is rare that any OTC company ever responds to messages; ECIG not only had someone from their IR Department call you back to personally speak with you, they did it the same day.

2. The vote by shareholders matters. It is important that the ECIG Board of Directors hears from ALL of the shareholders through the power of their vote (I have already exercised my right to vote). Whether the reverse split is approved or not the fact the vote is so close either way sends a clear signal that shareholders will not tolerate reckless dilution of the company's stock that will erode the value of their hard-earned investment. They clearly are getting this message when the company responded to your question that the principal purpose of the reverse split was NOT to resume dilution through convertible debt IF the reverse split was approved.

3. The company is seeking to grow responsibly without taking on too much debt. I thought it was a very positive response that the ECIG would not immediately be making additional acquisitions of other electronic cigarette companies (Atlantic Vapor), for as to do so at this particular point in time would be over extending the company financially, which could endanger its overall long-term growth by saddling it with debt that would be so fiscally imprudent as to be crushing. We, as shareholders, would not want the company to take on additional debt and be forced once again to issue convertible notes - we saw what that did to the share price in November - early January timeframe. It appears that ECIG management is acting responsibly and is not willing to use the shares as an "ATM machine" for company expansion.

4. Projected Earnings Will Be Good. It seems appropriate that ECIG management is not fixated on the day-to-day price fluctuations of their company's stock to the point we as investors continually monitor its performance - they are focusing their efforts and energies concentrating on the larger picture with regard to building their business to include such elements as:
--- Formulating a proactive business plan that will enable the company to achieve organic growth and revenue enhancement through successful marketing of their various electronic cigarette products and expanding market share in Europe, and North and South America.
--- Working with their new Chief Financial Officer, Phil Anderson to develop and implement a fiscally prudent plan to restructure their toxic debt.
--- In conjunction with the two aforementioned objectives, ECIG management is most certainly is devoting considerable time and attention to ensuring their financials are in order so as to enable them to meet the prerequisite criteria for uplisting the NASDAQ.

Once these three goals are met, ECIG as a company will be in a much stronger position fiscally and strategically and will be poised for substantive but controlled growth within the markets they currently occupy a strong foothold. Upon demonstrating this to the investment public, the price per share will definitely take care of itself and, perhaps would require a reverse split of a lower ratio than the self-prescribed maximum of 1/20. Remember, these corporate officers hold substantial sums of ECIG stock; the reverse split impacts them far greater than most of the individual shareholders in terms of post reverse split share reduction.

I think the telephone conversation with the ECIG Investor Relations department went as about expected - the divulgence of broad themes without providing any specific details they, as corporate officers are obligated to refrain from disclosing to any shareholder. Some good news can be implied from what I believe ECIG management wants the shareholder to infer from the context of the conversation through responses that to me were issued with a "wink and a nod".

As I previously stated, these are MY OPINIONS based on MY INTERPRETATION of the discussion presented. In any event, because the share structure is locked and seems will remain locked through the end of March, since any action take pursuant to tabulation of the votes cannot occur until 20 days have lapsed at the earliest, I believe anticipation of a very positive earnings report coupled with the innate solidness of the company and continued short covering of positions taken during the November to early January sell-down, will continue to apply substantive buying pressure that will elevate ECIG's stock price to the 0.25 level at a minimum by mid-March.

I remain long in my position here and will continue to do so for the foreseeable future.

I reached out to management via email on Thursday (Phil Anderson & Dan O’Neill). My goal was to get their attention while letting them know I consider myself a somewhat serious, knowledgeable, concerned investor who was looking for some information. The text of the email I sent follows:

Gentlemen,

I am a current investor in the company. For weeks now I have attempted to sign up to receive all investor related materials; Annual Reports, Press Releases, Financials, via email thru the “Investor Resources” page on the company web site. Apparently this option is not functional? As a former IT professional I find this quite discouraging. I personally view this like a company who “doesn’t answer their phone”.

With everything else going on right now with the company I must question how much this should concern me? If you are not able to fix it, I would suggest removing the option and providing another method to make the request.

Due to the recently filed “DEF-14A” I want to make sure I receive any subsequent filings with additional information as to why I should vote to approve either proposal. I currently hold 405,000 shares, where 397,000 are eligible to vote but not yet voted. Since you have not provided any details regarding the “preferred shares”, specifically the voting rights, I cannot vote in the affirmative for that option. I would like to vote “yes” for the reverse split, but I need some assurances the newly available authorized shares as a result of the RS will not immediately be used to dilute us back into oblivion.

Do you plan to release “anything” before March 10 that would convince me for approval? Do you have a projected date for when the 10-K will be released? Is there anything you can tell me regarding my concerns?

Sincerely,



Within a couple hours I received a reply from Don at the Piacente Group (Investor Relations) stating “Dan O’Neill asked me to speak with you”. I set up a time for Don to call me on Friday. He called me promptly at the specified time.

For the record, he basically said the kind of stuff you would expect. There was NO grand-standing, hint of “big things” to come, etc. The thing he said most is “I’m limited in what I can say”. I was afraid he would almost be reading off a script so when I thought that started, I did my best to get whatever I could. It was at least a 10 minute conversation so I obviously can’t quote anything verbatim. I’ll do my best to offer “my opinion” of what he was saying. Keep in mind I think to some degree we “all hear what we want to hear” so I tried to be cognizant of that.

MOST IMPORTANT thing I heard:
Q: How is the RS vote count going?
A: I’m not sure about the actual numbers, the CONCERN is receiving enough votes for a quorum.

Sounded like they are not on track to receive over 50% of eligible votes. He kind of blew-off the RS itself. This would explain the multiple requests for our votes.

I flat-out asked if management had a pre-split PPS in mind or a split ratio they were leaning toward (not really expecting an answer). He more or less blew-off the question and said they need the split to provide capital for the business to go forward. IMO, they are NOT considering the PPS right now with regards to an UPLIST! Said something about that would be 2 or 3 quarters down the road.

He couldn’t/wouldn’t comment of the amount of remaining debt or the status of the balance sheet but implied the “primary” reason for the RS was NOT to immediately resume CD dilution.

I said I could not vote for the AS without knowing the details regarding the preferred shares and he didn’t seem to care.

I said there were rumors of Q4 revenue being in the $40 mil range and he went nowhere near my comment. I also said I knew if the RS were approved it couldn’t happen for about 20 days after the vote which would coincide with 3/31 earnings. He kind of laughed like “I was on to something”. I told him a brief PR to say when earnings would be reported along with a revenue estimate would go a long way in shareholder confidence to vote for the RS. I also said “surely as of today they must know the Q4 revenue”. He said he would “pass along” my suggestion but they may not know actual revenue yet due to distributor deals.

I asked if there would be a PR announcing Phil’s official start & he implied “no”. When I asked about a PR regarding debt restructuring progress he said something along the lines “a PR has already been issued about Phil and that they were working on the debt. Another PR would not be issued unless something was complete”.

He was not aware of the web site issue but agreed with me and said he will look into it. Said he thinks that was left-over from the previous PR firm and had to do with the “IPO”.

I mentioned the connection to “Atlantic Vapor” and the predicate product. Let’s just say he laughed at the idea that ECIG would be shelling out any money here.