The reverse stock split has become a common process these days as companies try to execute it to reduce their liabilities. As per the reports, Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIGD) has decided to do the same now. It has completed one for fifteen reverse split of its common stock shares.
Insights On The Matter:
Electronic Cigarettes is the largest company to provide various vapor products and electronic cigarettes. Some of its products include FIN, Victory, Vapestick, VIP, etc. All the shares of the company have started trading on split basis from March 24, 2015. The new CUSIP of its shares is 285560207. As per the reports, FINRA has made it mandatory for the company to place ‘D’ at the end of its ticker ECIGD for the next 20 days. After this period, the ticker will again revert back to normal symbol ECIG.
As per the reports, Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIGD) wasn’t allowed to execute reverse stock split earlier. All the shareholders of the company approved its proposal to complete reverse stock split on March 10, 2015 for the first time. Once the authority was given to Electronic Cigarettes Board of Directors, it came up with a lucrative one for fifteen ratios.
What Does One-For-Fifteen Depicts:
The company has decided to offer one-for-fifteen ratio to all the shareholders, which means that every fifteen shares of Electronic Cigarettes were converted into one new outstanding and issued common stock share of the company. There is no charges payable at par in this conversion. As a result of this arrangement, the holding power of all the shareholders will remain unchanged and unaffected. Reports claim that no shareholder needs to take any action. The company has clarified that it won’t issue any fractional share to any shareholder after the reverse stock split procedure becomes active in the near future.