Eonsmoke, a leading maker of electronic cigarattes, has denied rumors of aquiring Altria Group, Inc. (NYSE:MO), a young e-cigarette business. Rumors about Altria buyout has been swirling the market since December 20th, when Eonsmoke executives were reported to allegedly meet with Marlboro management to discuss the possible acquisition.
The e-cigarettes company publicly said no to these rumors in a press statement today, where the company denied any talks about a possible sale with Phillip Morris. . "We don't even know how these rumors began; We haven't been approached or been involved in any talks with Phillip Morris International or their American arm Altria Group, Inc. (NYSE:MO)," said Igor Gromadskiy, Chief Operating Officer of Eonsmoke, LLC.
"We received too many inquiries to handle on a case by case basis so we had to publicly notify everyone," said Gregory Grishayev, Chief Financial Officer of Eonsmoke, LLC.
Ever since Philip Morris International Inc. (NYSE:PM) entered into a purchase deal with Blu Cigs for $135 million in April 2012, Industry analysts have been expecting Philip Morris to make a possible entry into e-cigarettes soon.
According to Bonnie Herzog, managing director of beverage, tobacco and consumer research at Wells Fargo Securities LLC: "We think e-cigs are to tobacco what energy drinks are to the beverage industry. Therefore, we think big tobacco needs to wake up and recognize the potential opportunity of the e-cigarette category,"
Assuring customers, investors, and distributers about a zero possibility of being bought out by Philip Morris International Inc. (NYSE:PM), Gregory Grishayev said in a statement: "You can imagine distributors are worried about their livelihoods. Many depend on Eonsmoke as their primary income and we wanted to assure our customers, investors, distributors, and suppliers that we are not pursuing a transaction to sell the company to Phillip Morris or any other suitor."
About The Company:
Eonsmoke, LLC deals in designing, marketing, and distribution of electronic cigarettes & accessories. The company sells its e-cigarettes and other products through distributors and wholesalers, as well as directly to consumers through its websites and mobile applications. Eonsmoke's offerings come under the brand names of Eonsmoke, Spirit Vapor, and Miami Cigs.