Vapor Corp. Closes Deal With Vaporin
DANIA BEACH, Fla. — Vapor Corp. and Vaporin Inc. have completed the merger for the two companies.
"This merger brings together a number of operating strengths that we expect to leverage to drive growth, including a national distribution network, expanded retail operations and management teams with a proven record of success," stated Jeffrey Holman, CEO of Vapor Corp, who will lead the new company.
Under the terms of the agreement, Vapor Corp. issued 13,591,549 shares of common stock to Vaporin shareholders, assumed Vaporin's restricted stock units and warrants and simultaneously completed a $3.5-million equity financing in conjunction with the closing of the transaction.
Vapor Corp. also acquired the retail store chain 'The Vape Store' as part of its merger with Vaporin.
"Through this merger we expect to capitalize on the success of The Vape Store brand, which provides us with a superior retail model to further penetrate the $1.2-billion vape shop retail channel," Holman said. "This strategy mirrors a general shift in customer preferences, as roughly one-third of the $3.5-billion retail purchases in the U.S. occur at vape shops, shifting from c-store, food, drug and mass retail channels."
Dania Beach-based Vapor Corp. is a distributor and retailer of vaporizers, e-liquids and electronic cigarettes. Its brands include Krave, VaporX, emagine vapor and Hookah Stix and are available at approximately 50,000 retail stores throughout the United States and Canada. The company sells direct to consumer via e-commerce and company-owned brick and mortar retail locations operating under the brands emagine vapor and The Vape Store.
"Store-level operating margins are extremely encouraging in our initial The Vape Store locations. We believe this store model can be replicated across the country and developed into a national retail presence capable of achieving sustainable, profitable growth," Holman added.