MIAMI, August 22, 2017 /PRNewswire/ --
Vapor Group, Inc. (OTC Pink: VPOR), ("Company"), today released the following letter to shareholders from its President and CEO, Yaniv Nahon.
We have become aware that some of you have become concerned about recent events at the Company, and are seeking clarification and more information. As your new President, I am writing to you to try to address some of these concerns, and plan to write to you regularly in the future.
Under terms of an exclusive worldwide distribution contract with EZ Grinder, Inc., a privately held company holding all intellectual property rights to Easy Grinder™, Total Vapor, Inc. a subsidiary of the Company, is the sole worldwide distributor of Easy Grinder™. It will remain so for the foreseeable future. Under terms of the contract, we hold the sole rights to manufacture and distribute Easy Grinder™.
Since its market introduction this year, we have been able to ship 12,000 Easy Grinders to date. Earlier, we had announced that we had commitments from distributors for the purchase of many more. However, we encountered serious limitations on what we were able to ship against distributor commitments due to the pre-production need to redesign critical components of the grinder, which delayed the start of initial production and slowed factory output. This in turn, forced higher manufacturing costs and resultant increases in wholesale and retail pricing. Consequently, several distributors reduced the size of their orders, backed off on commitments, or decided to delay acceptance of shipments of the higher priced product until we could prove market acceptance of Easy Grinder™. Today, we believe we have proven that the market for a superior grinder exists, that we have such a grinder in Easy Grinder™, and that our overall sales of Easy Grinder™ will continue to grow and escalate year-over-year. We are confident in our assessment based on the overwhelming positive responses Easy Grinder™ has received in online reviews, sales and from attendees at the BIG Industry Show in New York City in August, and ASD Market Week and the CHAMPS Trade Show in Las Vegas in July. Moreover, today we are working on agreements with overseas distributors for Easy Grinder™, and are working hard to broaden distribution and press coverage in order to increase consumer knowledge of, and preference for, Easy Grinder™, the world's best herbal grinder.
Businesswise, we continue to re-invent the Company. We are currently in negotiation to enter the business of selling and distributing hemp-sourced CBD oil products. We have discontinued operations of our subsidiary, Smart Wheels, Inc., due to lack of sustainable profitability in the marketing of scooters and accessories. We continue our e-cigarette and vaping-related businesses. While building and focusing on the Easy Grinder™ business this year, we continue to invest in the development of our previously announced, revolutionary 'Simple Cork', which currently has been engineered into several variations to meet the needs of different wine market niches at varying price points.
We are committed to continue to grow revenues. In the coming months, I will provide you with further updates on the progress that we are making. For now, we direct you to our recent postings of second quarter financial statements and disclosure, including particulars of our recent change of control, on OTCMarkets.com. If you have specific questions of us, please email [email protected].
Very truly yours,
President and CEO
Vapor Group, Inc.
About Vapor Group, Inc.
Vapor Group, http://www.vaporgroup.com, is focused on the acquisition and development of commercially viable intellectual property and proprietary products, while it continues its historic business of manufacturing and marketing vaporizers, e-cigarettes and e-liquids.
The Company's subsidiary, Total Vapor, Inc. is the worldwide distributor of the revolutionary, hand-held automatic Easy Grinder™ designed for the MJ market. For more information or to place an order, visit http://www.easygrinder.com, visit Amazon.com at http://a.co/5HOPUkE, or email [email protected]. You can also call us at 844-420-EASY (3279). To view a video demonstration, go to: https://www.youtube.com/watch?v=fveTEGXfG8I or on http://www.easygrinder.com.Easy Grinder™ may also be shipped to Canada.
Vapor Group also owns Simple Cork, Inc., http://www.simplecork.com, the developer of a new, multi-nationally patented combination wine bottle cork/opener being prepared for market entry in the second half of 2017.
Safe Harbor Statement:
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Such statements include any that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate", "project", "intend", "forecast", "anticipate", "plan", "planning", "expect", "believe", "likely", "should", "could", "would", "may" or similar words or expressions. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those in such statements, which involve risks and uncertainties, including those relating to the Company's ability to grow. Actual results may differ materially from those predicted and any reported should not be considered an indication of future performance. Potential risks and uncertainties include the Company's operating history and resources, economic, competitive, and equity market conditions.
Vapor Group, Inc.
SOURCE Vapor Group, Inc.