DANIA BEACH, Fla., Aug. 6, 2015
/PRNewswire/ -- Vapor Corp. (NASDAQ CM: VPCO, VPCOU) ("the
Company"), a leading U.S.-based distributor and retailer of
vaporizers, e-liquids, e-cigarettes and e-hookahs, today issued
comments on its recent capital raise and the intention to expand
its network of retail locations.
"Following the completion of our recent public offering, we are
extraordinarily well funded and well-positioned to execute against
our business plan swiftly and judiciously," said Jeff Holman, CEO of Vapor Corp. "I am happy to
report that Vapor Corp. now has a financially clean slate and will
use this significant war chest to fund our expansion efforts.
Our 10 existing 'Vape Store' locations are performing well and are
profitable at the individual store level. This significant infusion
of capital will allow us to accelerate our retail expansion through
a combination of new store launches and a roll up, in the form of
purchasing existing, profitable vape store locations. The current
retail environment is highly fragmented and ripe for
consolidation."
On July 30, 2015, Vapor Corp.
closed an offering of 3,761,657 preferred stock units at
$11 per unit for gross proceeds of
approximately $41.4 million and net
proceeds to Vapor Corp. of approximately $38.7 million. Each unit consists of one-fourth
of a share of Series A preferred stock (convertible into 10 shares
of common stock) and 20 Series A warrants. Each Series A warrant is
exercisable into one share of common stock at an exercise price of
$1.24 per share. The units began
trading on The NASDAQ Capital Market under the ticker symbol
"VPCOU" immediately following the closing on July 30, 2015.
"As the vaporizer and e-liquid market continues to mature, there
is a tremendous opportunity for Vapor Corp. to capitalize on its
industry knowledge and proven track record of launching and
supporting a successful retail store concept," continued Mr.
Holman. "We are confident that consumers will react favorably to
our expanded retail and branded presence. We are currently on track
to fulfill our goal of increasing our company owned retail store
footprint by 20 to 30 branded retail locations before the end of
the calendar year. In addition, based upon "The Vape Store's"
proven track record, we also expect the coming launch of our
franchise model to be exceptionally well received."
These ramp-up efforts come amid considerations by the Food and
Drug Administration (FDA) to implement its new regulations, further
evidencing the constantly evolving e-cigarette and vaporizer
market.
"We predict that the pending FDA regulations will improve safety
and the responsible use of vaping products in what is currently a
largely unregulated space. However, these regulations will likely
make it more difficult for smaller, local vape shops to remain in
business. As a result we expect to see the elimination or
consolidation of much of the current vape store landscape.
Vapor Corp. is cognizant of the opportunity that this
presents for the company to make reasonably priced acquisitions
during its consolidation efforts, and at the same time offer
smaller businesses a reasonable liquidity event under the
circumstances. Vapor Corp. is committed to the responsible
use of vaporizers and accompanying substances, and is excited to be
so strategically positioned to benefit from this changing
regulatory landscape," concluded Mr. Holman.
Forward-Looking Statements
This press release includes forward-looking statements including
statements regarding growth, aggressive expansion, launch of our
franchise model, and predictions regarding FDA regulations.
The words "believe," "may," "estimate," "continue," "anticipate,"
"intend," "should," "plan," "could," "target," "potential," "is
likely," "will," "expect" and similar expressions, as they relate
to us, are intended to identify forward-looking statements.
We have based these forward-looking statements largely on our
current expectations and projections about future events and
financial trends that we believe may affect our financial
condition, results of operations, business strategy and financial
needs. The results anticipated by any or all of these
forward-looking statements might not occur. Important factors that
could cause actual results to differ from those in the
forward-looking statements include the impact of competitive
products or pricing, technological changes, the effect of economic
conditions, and unexpected federal and/or state regulation
regarding vaporizers. Further information on our risk factors is
contained in our filings with the SEC, including the Prospectus
dated July 23, 2015. We undertake no
obligation to publicly update or revise any forward-looking
statements, whether as the result of new information, future events
or otherwise.
About Vapor Corp.
Vapor Corp., a NASDAQ company, is a U.S. based distributor and
retailer of vaporizers, e-liquids and electronic cigarettes. It
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 VaporX®, Krave®, Hookah
Stix® and Vaporin™ and are distributed to 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 Vape Store"
brand.
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SOURCE Vapor Corp.