The stocks of Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) posted another day of strong gains. The share prices surged more than 16% to close at $0.172, with a massive volume of 31.73 million. Earlier this week, the company disclosed the results of its Special Meeting of Stockholders.
The offer to give the Board the authority to implement a reverse stock split at a ratio varying from ‘1-for-5’ to ‘1-for-20’ was passed with 84.1% of the votes given, representing almost 66.5% of the outstanding shares, by favorable votes of 1.63 billion to 30 million shares or 15.7% of the against votes cast, with 0.2% of the votes cast abstaining.
The proposal to Electronic Cigarette board was to raise the number of authorized shares of capital stock to 350 million from 300 million, out of which 330 million are to be classified as common stock and rest of them would be classified as preferred stock.
The proposal received 55% of the total votes, representing nearly 32.1% of the shares outstanding. It is much less than the 50% minimum required limit of the voting shares to approve the proposal. The total vote was 79 million (for) to 57 million shares or nearly 39.8% of the votes in against, with 5.2% of the votes cast abstaining.
Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) Chairman Dan O’Neill stated that the board and management are pleased with the outcome of the special meeting. The proposal received good support from company’s shareholders for authorizing the Board to implement a reverse split of ECIG shares.
The decision is positive for the company as it will provide with ample flexibility to improve capital structure and enhance the balance sheet. He also paid gratitude to the shareholders for the confidence and trust that they have shown in Electronic Cigarettes management to continue creating a successful company.