Electronic Cigarettes Intl Group Ltd (OTCMKTS: ECIG) recently filed an SEC Form 8-K recently, and shares were down over 70% due to its filing for bankruptcy or receivership. Everyone knows cigarettes are bad for you, due to the extensive amount of studies on smokers. However, the electronic cigarette or vape is another story. Some say it’s better than smoking, some say vaping is worse. That in mind, we simply don’t know how vaping affects the human body due to the lack of research. Now, there may be a lack of demand for vaping and electronic cigarettes, and some vaping companies have been struggling.
Electronic Cigarettes is an independent marketer and distributor of vaping products and electronic cigarettes, or e-cigs. The company’s objective is to become a leader in the rapidly growing, global electronic cigarette and vaping segments of the broader nicotine-related products industry including traditional tobacco.
Electronic Cigarettes Intl Group Ltd (OTCMKTS: ECIG) accommodates an array product preferences of e-cigarette users by offering a comprehensive set of products, including disposables, rechargeables, tanks, starter kits, e-liquids, open and closed-end vaping systems and accessories. The company’s products consist of durable components and nicotine liquids that undergo rigorous quality testing during production.
The company has been struggling recently and was down over 95% over the past year. Now, there are some recent developments that could send shares lower. Moreover, for the fiscal quarter ended in September 2016, the company reported a net loss per share of 14 cents, a significant fall from its net income per diluted share of 9 cents in the same quarter during the 2015 fiscal year. The company does not seem like it could turn a profit, which is another reason why shares could fall lower.
Electronic Cigarettes International Group recently announced its U.K. subsidiary company has been placed under administration process. The company stated in its release, “Must Have Limited, a limited liability company incorporated in England and Wales (“MHL”) and wholly-owned subsidiary of Electronic Cigarettes International Group, Ltd., a Nevada corporation (the “Company,”), was placed under the “administration” process (the “Administration”) in the United Kingdom (“UK”) by order of the High Court of Justice, Chancery Division, Companies in England and Wales. Geoff Rowley and Anthony Collier, both partners at FRP Advisory LLP, were appointed as joint administrators with respect to MHL.”
According to Electronic Cigarette CEO Dan O’Neill, “Based on the administration process in the United Kingdom we will be evaluating the strategic alternatives available for the future of the company…Legacy financial commitments and MHL’s underperformance in the UK prevented the subsidiary from meeting its financial obligations.”
Now, that wasn’t the only bad news the company had recently. As stated earlier, the company filed a Form 8-K, and it stated, “After considering all strategic alternatives, Electronic Cigarettes International Group, Ltd. (the “Company”) filed a voluntary petition for relief under the provisions of Chapter 7 of Title 11 of the United States Code, 11 U.S.C. §§ 101 et seq. (the “Code”) in the United States Bankruptcy Court for the District of Nevada (the “Bankruptcy Court”) on March 16, 2017. As a result of this filing, a Chapter 7 trustee will be appointed by the Bankruptcy Court (the “Chapter 7 Trustee”) and will assume control of the Company. The assets of the Company will be liquidated and claims paid in accordance with the Code.”
Additionally, in Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers, the company noted, “In connection with the bankruptcy filing, the Chapter 7 Trustee will assume control over the assets and liabilities of the Company. Accordingly, on March 16, 2017, Daniel J. O’Neill, James P. Geiskopf, Craig Colmar, and David Karp resigned from their positions as directors of the Company.”
ECIG has been beaten up lately, and it just had some more bad news. Although ECIG had some bearish news recently, the company could still turn around. Now, you’ll want to keep an eye on ECIG since there could be a lot more news coming out soon. Rather than staring and sitting on the computer screens all day and straining your back to wait for this news, stay up to speed on any breaking ECIG developments by entering your active email address to our free newsletter below.