TERM LOAN PROVIDES THE COMPANY A RUNWAY TO DRIVE PROFITABLE GROWTH AND ELIMINATE CONVERTIBLE NOTES
GRAND RAPIDS, MICHIGAN, April 28, 2015 – Electronic Cigarettes International Group, Ltd. (OTCBB: ECIG), a global marketer and distributor of electronic cigarette and vapor products, today announced that it has issued approximately $41 million in non-convertible 36 month senior secured term loans to strategic business partners and long-term financial investors. The Company has also repurchased and retired the remaining convertible subordinated notes, and fixed the conversion price of the remaining notes.
The 36-month term loan strengthens the Company’s balance sheet and provides additional financial flexibility, as amortization of principal does not begin until October 2016.
“This new capital allows us to eliminate the toxic, discount convertible notes from our balance sheet, affixes our capital structure and provides the working capital necessary to fund our growth,” said Dan O’Neill, Chairman and Chief Executive Officer of the Company. “I know our shareholders have been upset, as the stock has fallen while we have been busy working diligently to eliminate our non-strategic, short-term opportunistic debt holders. This process has taken longer than we originally thought. I’m happy to say that we now have a great group of supportive investors, who recognize the opportunity of this market. We can now go forward with their support, committed to a plan of controlled profitable growth and increasing shareholder value.”
About Electronic Cigarettes International Group, Ltd. (ECIG)
Electronic Cigarettes International Group (ECIG) is dedicated to providing a compelling alternative to traditional cigarettes for the more than 1 billion current smokers around the world. ECIG offers consumers a full product portfolio that incorporates product quality and the latest technology. The Company’s website is www.ecig.co.
Safe Harbor Disclosure
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting management’s current expectations regarding future results of operations, economic performance, financial condition and achievements of ECIG, including statements regarding ECIG’s expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue to materialize consistent with recent trends. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include: ECIG’s reliance on additional financing, ECIG’s profitability and financial health, risks associated with ECIG’s products, including that they may pose a health risk; governmental regulations may impact ECIG’s business; the market or consumers may not accept ECIG’s products; ECIG relies on a single class of products; existing or pending patents may affect ECIG’s business; and other factors disclosed in the Company’s filings with the Securities and Exchange Commission. Unless required by applicable law, ECIG undertakes no obligation to update or revise any forward-looking statements.
For investor inquiries please contact:
Don Markley/Matthew Abenante
The Piacente Group, Inc.
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