Motion for Asset Sale Filed by Electronic Cigarettes International Group, Ltd.
May 11, 2017 at 12:00 am EDT
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The Trustee for Electronic Cigarettes International Group, Ltd. filed a motion in the US Bankruptcy Court for the sale of debtor’s interest in assets of its subsidiary, FIN Branding Group, LLC on May 11, 2017. The Trustee seeks the Court’s approval for the sale of debtor’s interest in assets of FIN Branding Group, LLC to Axcentria Pharmaceuticals, LLC for a net consideration of $0.41 million. The buyer shall pay a sum of $0.03 million upon closing, 50% of the inventory value upon consumption for the first six months amounting to $0.20 million, and 6% of net sales for a period of two years amounting to $0.18 million. The assets of FIN Branding Group, LLC include remaining inventory and other assets including trade names, software, domain names, customer lists, intellectual property and transferable licenses and permits. The sale is subject to higher and better offers. The proceeds from the sale shall be used towards payment of administrative expenses up to a maximum of $0.05 million. The sale hearing is scheduled for June 8, 2017.
Electronic Cigarettes International Group Ltd is a United States-based company. The Company is an independent marketer and distributor of vaping products and e-cigarettes. The e-cigarettes are battery-powered products that simulate tobacco smoking through inhalation of nicotine vapor without the fire, flame, tobacco, tar, carbon monoxide, ash, stub, smell and other chemicals found in traditional combustible cigarettes. The Company accommodates the various product preferences of e-cigarette users by offering a set of products, including disposables, rechargeables, tanks, starter kits, e-liquids, open and closed-end vaping systems and accessories. Its products consist of components and nicotine liquids. Its global brand portfolio includes the FIN, VIP, VAPESTICK, E-CIG, PRO VAPOR and VICTORIA brands. The Company offers E-cigarette cartridges in a range of flavors.