DANIA BEACH, Fla., March 5, 2015
/PRNewswire/ -- Vapor Corp. (NASDAQ-CM: VPCO; "Vapor", the
"Company"), a U.S. based distributor and retailer of vaporizers,
e-liquids, and electronic cigarettes, and Vaporin, Inc. (OTCQB:
VAPO) today announced the completion of a previously announced
merger of the two companies.
Per the terms of the agreement, Vapor issued 13,591,549 shares
of common stock to Vaporin shareholders, assumed Vaporin's
restricted stock units and warrants and simultaneously completed a
$3.5 million equity financing in
conjunction with the closing of the transaction.
"This merger brings together a number of operating strengths
that we expect to leverage to drive growth, including a national
distribution network, expanded retail operations and management
teams with a proven record of success," stated Jeffrey Holman, Chief Executive Officer of Vapor
Corp, who will lead the new company.
"Through this merger we expect to capitalize on the success of
'The Vape Store' brand, which provides us with a superior retail
model to further penetrate the $1.2
billion vape shop retail channel. This strategy
mirrors a general shift in customer preferences, as roughly
one-third of the $3.5 billion retail
purchases in the U.S. occur at vape shops, shifting from c-store,
food, drug and mass retail channels," Mr. Holman continued. "We
were one of the first companies to identify this shift and have
developed retail strategies, including opening and acquiring more
than a dozen vape shops in multiple states across the
country."
"Store-level operating margins are extremely encouraging in our
initial 'The Vape Store' locations. We believe this store
model can be replicated across the country and developed into a
national retail presence capable of achieving sustainable,
profitable growth," concluded Mr. Holman.
About Vapor Corp.
Vapor Corp., a NASDAQ company, is a U.S. based distributor and
retailer of vaporizers, e-liquids and electronic cigarettes.
It is presently the only vaporizer company listed on a major
stock exchange (NASDAQ Symbol: VPCO), and recently acquired the
retail store chain 'The Vape Store' as part of a merger with
Vaporin, Inc. The Company's innovative technology enables users to
inhale nicotine vapor without smoke, tar, ash or carbon monoxide.
Vapor Corp. has a streamlined supply chain, marketing strategies
and wide distribution capabilities to deliver its products.
The Company's brands include Krave®, VaporX®, emagine
vaporTM and Hookah Stix® and are distributed to, and
available at, approximately 50,000 retail stores throughout the
U.S. and Canada. The Company sells
direct to consumer via e-commerce and Company owned brick and
mortar retail locations operating under the brands emagine
vaporTM and The Vape Store.
Safe Harbor Statement
This press release contains certain forward-looking statements
that are made pursuant to the "Safe Harbor" provisions of the
Private Securities Litigation Reform Act of 1995, as amended,
including but not limited to those regarding the merger and equity
financing. Such statements are not historical facts and include
expressions about management's confidence and strategies and
management's expectations about new and existing programs and
products, relationships, opportunities, taxation, technology and
market conditions. Words such as "expects," "anticipates," "plans,"
"believes," "scheduled," "estimates" and variations of these words
and similar expressions are intended to identify forward-looking
statements. Such forward-looking statements involve certain risks
and uncertainties. Actual results may differ materially from such
forward-looking statements. Factors that may cause actual results
to differ from those contemplated by such forward-looking
statements include, but are not limited to, the following: failure
to enter into the third financing transactions in connection with
the merger, reaction to the merger of Vapor's customers and
employees; the diversion of management's time on issues relating to
the merger; the inability to realize expected cost savings and
synergies from the merger of Vapor with Vaporin in the amounts or
in the timeframe anticipated; Vapor's operations and its ability to
successfully execute its current business strategy changes in the
estimate of non-recurring charges; costs or difficulties relating
to integration matters might be greater than expected; the
inability to retain Vapor's of Vaporin's customers and employees;
or a decline in the economy, as well as the risk factors set forth
in Vapor Form 10-K (and as supplemented by Item 1.A. in Vapor's
Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2014). These
forward-looking statements are made as of the date of this press
release, and Vapor assumes no obligation to update the
forward-looking statements or to update the reasons why actual
results could differ from those projected in the forward-looking
statements.
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SOURCE Vapor Corp.; Vaporin