Vaporin Inc (OTCBB:VAPO) continues to trade lower after the pop to $2.80 last month. VAPO joined the sector in March fresh off the name change from Valor Gold Corp.
Vaporin Inc (OTCBB:VAPO) is a distributor and marketer of electronic cigarettes, vaporizers, and e-liquids products. Vaporin’s innovative technology offers the look, feel and taste of traditional cigarettes without any tar, tobacco, smoke and odor. As an alternative to traditional cigarettes, Vaporin is offered in a variety of disposable and rechargeable starter kits and flavors. The unique Vaping Pens product line and Made-In-USA E-Liquid is what makes Vaporin one of the emerging brands in the market.
Back in September VAPO announced the closing of the acquisition of The Vape Store which operates four vape shops on the west coast of Florida with annualized revenue of approximately $2.6 million. This acquisition completes the fourth revenue stream in the Company’s overall strategic business plan. The Company’s existing online, convenience store and vending machine business model has already experienced sequential quarterly revenue growth of 130% in Vaporin’s first five months of operations in 2014.
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To complete the acquisition, The Company raised $880,000 from the sale of 8,000,000 shares of common stock at $0.11 per share in a private placement offering to four accredited investors. No broker-dealer was involved.
On November 6 VAPO announced that it has executed a binding term sheet to enter into a merger with Vaporin, Inc. (otcqb:VAPO) a company whose primary focus is in vaporizers and eliquids.
Pursuant to the Term Sheet, a second equity financing of $3.5 million is expected to close contingent on the closing of the merger with Vaporin. The Term Sheet also contemplates that the Company may receive up to a total of $25.0 million in additional equity investments subject to financial covenants and performance-based metrics still to be negotiated and documented in the final definitive agreements.
VAPO recently released expected financial results for the third quarter and nine months of 2014 after the market closes on Friday, November 14, 2014. Highlights will include six (6) new retail kiosk locations opened in major U.S. shopping malls, since November 1, 2014, and reported net sales of $2,673,926 and $13,547,792 for the three and nine months ended September 30, 2014, respectively, which represent decreases of 58.3% and 28.5%, respectively compared to the prior year periods.
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Conclusion: VAPO has made a big move up in recent weeks after the stock hit a low of $1.43 per share. The stock has gone from relative obscurity to become one of the top traded stocks on the entire OTCBB. Currently trading at a $7 million market valuation VAPO has over a million in the treasury and little short term debt. VAPO looks to be under accumulation here and is quickly developing the type of loyal shareholder base that can drive these bb’s skyward. The Company operates in a red hot sector that is exploding as Marijuana is finally legalized across the USA.
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Disclosure: we hold no position in VAPO either long or short and we have not been compensated for this article.