Vapor Group, Inc., VPOR, to Close Merger by October 21st, Shift Focus of Business
13 October 2016 - 9:00PM
Access Wire
MIAMI, FL / ACCESSWIRE / October 13, 2016 / The
Board of Directors of Vapor Group, Inc. (OTC Pink: VPOR), (the
"Company", "Vapor Group"), announced today that the reverse merger
(the "Merger") announced August 24th, scheduled to close by
September 30th, will close by Friday, October 21, 2016. At that
time, an announcement will be made releasing detailed information
and web links to product information. Following the Merger, Vapor
Group will change its name and trading symbol.
As previously announced, the merging corporation is a U.S.
corporation owning U.S. and foreign patent rights in several
countries for a new type of bottle closure to be used by wineries.
The U.S. and worldwide wine industry consumes billions of closures
in bottling operations yearly, a sizeable portion of which can be
replaced by this new closure which provides broad consumer
benefits. Initial target markets are the U.S. and wine-producing
European countries.
The Merger will be consummated by a share exchange wherein the
capital stock of the merging corporation will be exchanged for a
series of convertible preferred stock of the Company (the "Share
Exchange") which is subject to a holding period before any
conversion to common stock. As a result, the Share Exchange will
create no immediate dilution to the common shareholder. In
addition, no common stock is being issued in connection with the
Merger which also would be dilutive.
As a result of the Merger, the existing board of directors of
the Company will appoint a majority of new members, and the
resulting new board of directors will immediately initiate a search
for a new CEO ("Chief Executive Officer").
Under the terms of the Merger, the Company will immediately
explore the spin-off of each of its subsidiaries as an independent,
publicly-traded company, wherein the first spin-off would occur in
early 2017 by a share dividend to existing shareholders of record
on a given date of ownership.
Vapor Group believes that the sales potential of this new type
of closure, currently completing engineering development, will
represent a huge incremental gain in its future revenues and
profits. To that end, the Company plans additional multiple,
foreign patent filings in 2016 and 2017 and the addition of new
patents and intellectual property for related products and
technologies. Application testing of the new closure is expected to
be completed later year, with active product marketing and
worldwide licensing beginning in 2017.
Dror Svorai, President and CEO, said, "The impact of this Merger
is to re-make us into a totally new business with the potential to
scale into a worldwide enterprise. It provides an exciting, fresh
outlook for us based on an entirely new business model, and brings
into our organization creative engineering and marketing skills
that we haven't had before." He added, "Once the Merger closes, we
will begin creating product top-of-mind awareness in the worldwide
wine industry in order to facilitate our sell-in and build on a
buzz that is already starting."
About Vapor Group, Inc.
Founded in 2012, the primary focus of Vapor Group, Inc.,
www.vaporgroup.com, has historically been the design, manufacture
and marketing of high quality, vaporizers and state-of-the-art
electronic e-cigarette brands and custom formulated, high purity
"Made in the USA" e-liquids. These products are sold under the
Vapor Group, Total Vapor, Vapor 123 and Vapor Products brands. The
Company also markets cutting-edge consumer products including the
"Whizboard" brand of scooters and "Hoverkart" accessories sold by
Smart Wheels, Inc., its subsidiary. All products are sold
nationwide through distributors and directly to consumers through
Company owned websites. The Company wholly owns and operates the
following subsidiaries: Total Vapor Inc., Vapor 123 Inc., Vapor
Products, Inc., VGR Media, Inc. and Smart Wheels, Inc.
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. Certain
statements set forth in this press release constitute
"forward-looking statements." Forward-looking statements include,
without limitation, any statement 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", "will
likely", "should", "could", "would", "may" or words or expressions
of similar meaning. 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 included within the forward-looking
statements. Forward-looking statements involve risks and
uncertainties, including those relating to the Company's ability to
grow its business. Actual results may differ materially from the
results predicted and reported results should not be considered as
an indication of future performance. The potential risks and
uncertainties include, among others, the Company's limited
operating history, the limited financial resources, domestic or
global economic conditions -- activities of competitors and the
presence of new or additional competition and conditions of equity
markets.
CONTACT:
Vapor Group, Inc.
954-792-8450
SOURCE: Vapor Group Inc.
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