[Originally published on May 18, 2014.]
Victory Electronic Cigarettes (OTCQB:ECIG), which markets and distributes electronic cigarettes, announced this week that they have filed with the SEC to raise up to $150 million and uplist on the NASDAQ. They are currently trading via OTC market under the symbol ECIG. Wells Fargo Securities and Canaccord Genuity are the joint bookrunners.
Shortly after becoming a public entity on June 25, 2013, Victory released 1st half results that demonstrated growth of over 200% in revenue. Thereafter, Victory released information confirming continued growth in its online business, recent success with its retail expansion, and recent expansion in two major international markets.
Recently, Victory Electronic Cigarettes announced reaching an agreement with ASDA Stores Ltd., a subsidiary of Wal-Mart Stores (NYSE:WMT), Inc., to expand its VIP® brand across the retail chain throughout the United Kingdom. The brand is rolling out immediately to the first 272 outlets, and will be expanding chain-wide over the next 8 weeks to ASDA Supercenters, ASDA Superstores, and ASDA Supermarkets.
My Opinion: Living in Southwest Florida I have seen first hand how fast the electronic cigarette market can grow. I have watched small "mom and pop" shops turn into mini franchises with multiple stores within less than a years time. I believe the electronic cigarette business has the potential for massive growth in the future and would like to jump on board at the beginning of this movement. However, I am concerned with the fact that the FDA has yet to form any regulations on that particular market. It is important to understand that any money you invest into E Cigarettes could be lost in the event that the FDA decides to shut them down. At this point we have added ECIG to our watchlist but do not have any positions in this company. We will be conducting further research before making any decisions. The 52 week low is .56 (7/10/13), 52 week High is $60 (9/19/13). Average 10 day volume is 16,000.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ECIG over the next 72 hours.
Editor's Note: This article discusses one or more securities that do not trade on a major exchange. Please be aware of the risks associated with these stocks.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.