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Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIGD) Declines After Split

Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIGD) declined almost a quarter of its market value after it completed a one-for-fifteen reverse stock split. The shareholders were clearly disappointed with the latest shenanigans. The disappointment is quite evident and they have every reason to be as shareholders have voted in favor of a reverse split “between 1-for-5 and 1-for-20”. However, investors expected the reverse split number would be on the lower end.

The impact

As a direct impact of the reverse split, Electronic Cigarette share prices declined sharply to $1.38 adjusted price on a dollar volume of nearly $3 million. It was quite unpleasant for shareholders those who were considering a long term investment. The fears are far from over as more panic selling is expected in the coming weeks. The stock price may plunge defeating the very objective of “reverse split” affair. Such a turn of events would be extremely harmful to investor value.

The scope

Electronic Cigarettes gives the hope to the market and its investors that electronic cigarettes will do that to the tobacco market what digital photography did to the popular Eastman Kodak Co. Brent Willis, the CEO, is hoping to direct that dream from the company’s headquarters building at Grand Rapids. Electronic Cigarettes has turned into one of the big players in the worldwide competition to promote “vaping” as a healthier and better alternative to tobacco products.

The other details

Electronic Cigarettes is a publicly-held entity that recorded nine-month sales of approximately $31.0 million through last September. The company will announce annual sales for FY2014 later this month. It markets its products under the brands Victoria, VIP, FIN, Victory and El Rey. The company is competing on an international platform as a large part of its sales are overseas. The opportunity in vaping market is significant. The company utilizes a small vaporizing system that transfers nicotine to the lungs through a mixture of propylene glycol, glycerin , flavorings and water.

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