Vape Holdings Inc. (OTCMKTS:VAPE) Falls Further Down

Yesterday took Vape Holdings Inc. (OTCMKTS:VAPE) even further from the nickel mark, as the ticker dropped another -17.65% after a session of intense selling.

Although VAPE‘s latest jump came to a screeching halt exactly one week ago, it wasn’t until the next day that it published its latest 8-K. Once that report hit the web, the ticker was in free fall for good. Why?

Because said report announced that another 10 MILLION shares of common stock have been issued since the beginning of October 2015. This brings the total number of shares of shares outstanding of VAPE’s common stock to 29.4 MILLION as of October 13, 2015.

Unsurprisingly, investors reasoned that if VAPE was going to get diluted so badly, the needed to get out. And who could really blame them? After all, the company had just 12 million shares outstanding as of August 14, 2015. That number has ballooned by 150% in a matter of months.

Furthermore, since VAPE obviously has no problem with announcing unregistered sales of securities two weeks after the fact, the risk of a dump-induced crash is all the greater. Because, as it is, there’s nothing to stop the company from issuing another 10 million shares and those shares finding their way onto the market before they’re even reported, crashing the ticker to the ground in a matter of minutes.

Since this is the case, and it doesn’t look like the picture is going to improve any time soon, running for the hills doesn’t really sound sound like a bad idea right about now.