Vapor Group, Inc., VPOR, Provides Additional Information on the Use of Preferred Stock Issued for the Acquisition of VGR Media, Inc.

DAVIE, FL, United States / January 8, 2015 / Vapor Group, Inc. (OTCQB: VPOR), (the “Company”), clarified for its shareholders today the strategic use of the 100,000 shares of Series B Preferred Stock issued for the acquisition of VGR Media, Inc. on December 31, 2015.

Dror Svorai, President and CEO, said, “There seems to be some concern about the why we issued the preferred stock that we did for this acquisition. To clarify, we always intended that the Series B Preferred shares issued for VGR Media, Inc. be held in trust by us as management for its gradual conversion into awards of ‘performance stock options’ of restricted common stock to VGR employees.  Performance options typically have an ‘earn in’ period of one year or more and are granted in the first quarter of the following year.  So, any performance option shares would be granted by us to the employees in the first quarter of 2016 – assuming that they achieve their individual and collective goals. (Recall that these preferred shares can’t be converted until essentially January 1, 2016.) These shares will ‘pay out’ over a period of up to five years. We did it this way so that the performance option shares being held by us, because they are preferred, are non-dilutive to our shareholders.”

He added, “The formation of VGR Media as a stand-alone, initially was a vital test run for us. When we founded it we weren’t sure that the complex interactive web play would work. Its pitch spanned products beyond our offerings. Fortunately, it worked well beyond our expectations and we believe its value was at least $500,000 at year-end.  Understand that VGR handles non-competitive products on the web and is the ‘person behind the curtain’ for several marketers.  Those marketers don’t want to be identified as yet. What we can say is that VGR is profitably selling products and services that are legal in all 50 states.

Like any ad agency, VGR’s business model is not asset rich or even hard-asset focused, rather it is meant to be a cash flow generating machine.  For now, we are not divulging more about its strategy or more about its results until we complete the required federal filings. We don’t want to give our competitors good ideas.  Suffice it to say that we will disclose more as we move forward.

Because of VGR’s immediate success, we wanted it in Vapor Group, but were advised to do so without diluting the common stock of our shareholders or spending cash needed for business expansion and inventory.  Hence preferred stock in a quantity that equates to what we believe VGR’s value is; the stock being granted over time to its employees.  If VGR’s pace continues as expected, this acquisition will prove to be a very smart move indeed.”

About the VGR Media, Inc.

VGR Media, Inc., founded in 2014, www.vgr-media.com, is a full service interactive advertising agency, offering customized performance marketing solutions to help marketers of consumer products acquire new customers and maximize their return on investment. Based in Davie, Florida VGR Media operates in the U.S. and internationally. VGR Media’s competitive advantage is that it focuses on delivering quantifiable, measurable results unlike other interactive advertising agencies.

 

About the Vapor Group

Vapor Group, Inc., http://www.vaporgroup.com/, is in the business of designing, developing, manufacturing and marketing high quality, vaporizers and e-cigarette brands which use state-of-the-art electronic technology and specially formulated, “Made in the USA” e-liquids, which may or may not contain nicotine. It offers a range of products with unique e-liquid flavors that is unmatched in our industry. Its products are marketed under the Vapor Group, Total Vapor, Vapor 123 and Vapor Products brands. It sells nationwide through distributors, wholesalers and directly to consumers through its own websites and direct response advertising.

All of its E-cigarettes consist of a long-life battery, a heating element, a cartridge filled with an “e-liquid” and an atomizer which when heated vaporizes the e-liquid. Because E-cigarettes are not “lit” like regular cigarettes, they don’t create flame, smoke from burning, ash, tar, noxious fumes or leftover “cigarette butts”. As a result, they may be used virtually anywhere.

Vapor Group is committed to providing E-cigarettes that are convenient and economical to use, safer and healthier than traditional smoking, and which provide a flavorful, enjoyable smoking experience.

Vapor Group, Inc. is managed by a highly experienced team of executives committed to responsible business policies and practices, including the marketing of our products only to those eighteen years of age or older, not making or avoiding claims about our product health benefits, and fulfilling the requirements of all applicable laws and regulations.

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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