Georgi Kamburov

Vapor Group Inc (OTCMKTS:VPOR) Issues Letter To Shareholders, Drops Below $0.001

by Georgi Kamburov May 22, 2015

The quarterly report is extremely important because it will show exactly how much convertible debt is still outstanding in addition to revealing the exact number of the shares issued by VPOR as a conversion notes. Since the start of the year shareholders of the company have had to suffer through a crushing dilution of VPOR’s common stock. During the first three months of 2015 $1.7 million worth of convertible debt was turned into common shares at discounted prices. We won’t know how much debt that can still be turned into shares is left until the financial report.

What we do know and what VPOR announced in the PR from yesterday is that they were forced to once again increase their authorized shares. Two months ago VPOR already increased their authorized shares to 4.5 billion but apparently even that amount was not sufficient. Now the company's A/S stands at 8 BILLION.

According to VPOR their operations are growing but will this be enough to offset the horrific dilution of the common stock? Keep in mind that between January 1 and March 31 the outstanding shares ballooned from 930 million to over 2.6 BILLION. How do you think the market will react if the quarterly report shows that the rate at which new shares have been printed has remained the same?

Even if you believe in the potential of VPOR's business the red flags around the stock remain far too big to be ignored. Do your own extensive due diligence and adjust your trades accordingly in order to minimize the chances of any unpleasant surprises. 

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