Replies to post #52253 on Electronic Cigarettes International Group Ltd fka

[Bjdev89]

ECIG took the remaining toxic debt they had and paid it off with $13 million. They got the $13 million from an "institutional investor" who now has the ability to convert the $13 million into shares at a pre-rs price of $.05/share (in a 1 for 5 RS this would be $.25/share or 50 million shares of the new AS). This institutional investor also has options to buy shares at $.03/share which encourages them to hold shares and not dilute/sell off and kill us (non-toxic).

In addition to the $13 million in cash to pay off the old toxic debt holders, ECIG also has a $150,000 per month payment to the old debt holders for a year AND warrants for another 125 million shares (pre-RS) or 25 million shares in a 1 for 5 RS.

So easy way to say it is they borrowed non-toxic money and gave post-RS shares to an institutional investor in order to pay off the old debt holders with the proceeds from that fundraise and new shares after the RS.

More on the latest 8-K:

It's 226 million for the first set of warrants to the institutional investor

then

125 million for the unsecured note/warrants to the other investor

plus

Our 60, 30, or 15 million

So in a 1 for 5 RS we have a new OS of ~130,200,000 (Current shares being 60 million of those)
In a 1 for 10 RS we have a new OS of ~65,100,000 (current shares being 30 million of those)
In a 1 for 20 RS we have a new OS of ~32,550,000 (current shares being 15 million of those)

Important to note that is assuming none of the convertible debt converts to shares! This is something that the market will probably still price into the pps.

A 1 for 5 RS works. Also, the market cap sits at ~$57.1 million after all of this at our current pps. As I've always said, anything over a 1 for 10 would scare me off and still would.

Over half the company's equity has been traded away for this debt resolution and there is still convertible debt available to them. That being said, they are incentivized to handle it responsibly and company financials should tip us off further on how to digest all this.

I'm fascinated to see how the PPS reacts tomorrow. I can see folks who understand all this reacting differently. The convertible shares are still scary and the risk they bring may be a pps mitigator until financials come out. Good luck!