VAPE HOLDINGS INC (OTCMKTS:VAPE) Turns Red
Yesterday, VAPE HOLDINGS INC (OTCMKTS:VAPE) had its first red session since June 19. By the time of the closing bell, its volume was 1.4 million shares. It opened at $3.18 and closed at $2.72 – a total 12% drop.
In our latest article, covering VAPE, from July 01, we discussed the major issues it is faced with, of which the number one is still dilution. As we already mentioned, the company had issued convertible notes, some of which were converted at a 40% discount from the lowest closing price within the previous 20 sessions, prior to the conversion date. As if that wasn’t enough, there are also 2.2 million outstanding warrants, which could be exercised at the price of $0.114. Should these shares and warrants be converted and cashed in, it could result in catastrophic repercussions for the company.
In that aforementioned article, we also shared the numbers VAPE reported in its latest quarterly report, ended March 31. They haven’t changed:
- cash – $598 thousand
- current assets – $768 thousand
- current liabilities – $556 thousand
- revenue – $30 thousand
- loss from operations: $215 thousand
VAPE hasn’t released any new information recently. The company’s latest press release dates back to June 11. VAPE shed some light about the soft launch of HiveCeramics.com, their e-commerce website, and shared that in May, it managed to generate over 300 retail sales. And on July 01, they filed an 8-K report, which informs us of a change in the Board of Directors. Allan Viernes was given the position of Chief Financial Officer. Mr. Viernes was appointed as a replacement for Kyle Tracey. Mr. Tracey assumed the position only on an interim basis, and now remains Chief Executive Officer and Chairman of the Board of VAPE HOLDINGS INC.
As you know, VAPE is a company that makes “healthy and sustainable vaporization products”. What launched it into the $40 per share mark, was its association to the marijuana industry. The hype and excitement surrounding pot stocks is fleeting, as we have seen before with many other companies, like PHOT and VHUB, for example.
Growlife Inc (OTCMKTS:PHOT) and Vapor Hub International Inc (OTCMKTS:VHUB) started out strong, but now float at the bottom of the charts. Could VAPE have the same fate in store? Shareholders and potential investors should do their due diligence before deciding to trust any company with their money.
