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.
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.
SOURCE Vapor Corp.