Electronic Cigarettes Intl Group Ltd(OTCMKTS:ECIG)), a company which is committed to provide a convincing alternative to traditional cigarettes for the more than 1 billion current smokers around the world, has made a announcement of one-for-fifteen reverse split of its outstanding common stock, today. With the dawn of the trading session on Tuesday, 24th March, 2015, the common stock of the Company will trade on a split-adjusted basis. The new CUSIP would be 285560207 and following the regulations prescribed by the FINRA, there would be an addition of ‘D’ at the end of the Company’s existing ticker name and the new ticker name would read as ECIGD. However, the change of the ticker name would only be effective for 20 business days corresponding to which the Company would regain its previous ticker name “ECIG”.
The fast growing independent electronic cigarette company is a global marketer and distributor of electronic cigarette and vapor products and owns the trademarks VAPESTICK®, FIN®, Victory®, VIP® and others. The decision came after the Company received a green signal from the Company’s stockholders to allow the Company’s Board of Directors with an authority to effect a reverse split of the outstanding common stock. The Board of Directors subsequently approved the one-for-fifteen ratio. The Company’s stockholders approved the proposal on 10th March, 2015.
As per the reverse split, every fifteen shares of the Company’s issued and outstanding common stock were automatically converted into one issued and outstanding share of common stock. However, there would be no change in the par value per share. Nor would there be any change in the each stockholder’s percentage ownership interest and proportional voting power. The stockholders are entailed to take no action and their rights and privileges also remain unafftected. One crucial thing to be noted is that the Company would not be issuing any fractional share following the reverse split. As a result of this, the stockholders who are otherwise sanctioned to receive fractional share would receive a cash payment. The cash payment that would be done would be based on the closing price of the Company’s common stock on the last trading day immediately before the effective date of the reverse split.