Vapor Corp (OTCMKTS:VPCO) Approaches Rock Bottom
The chart of Vapor Corp (OTCMKTS:VPCO) is getting so depressing that it will soon be beyond description. Just take a look at the performance since the start of March – since then the ticker has registered less than 10 session that didn’t end in the red. The fact that on March 9 the company did a 1-for-70 reverse split makes the situation even grimmer because on the day of the split VPCO‘s share price was bumped all the way up to 19 cents per share while at the moment, after yesterday’s massive crash of over 33%, the stock is sitting at $0.0004 per share.
The bad news is far from over, though. During yesterday’s trading the dumping of shares on the open market reached unprecedented levels – when the closing bell put an end to the trading day nearly 335 million shares had been exchanged. To truly realize what that number signifies we must remind you that after the reverse split VPCO‘s outstanding shares were reduced from approximately 973 million to around 13.9 million. As of April 6 the company had 64.9 million outstanding shares. Well, yesterday, in just a single session, investors shifted five times that amount.
These levels of dilution are reminiscent of what happened back in January and February when VPCO were forced to issue over 900 million shares through the cashless exercise of Series A warrants and conversion of Series A preferred stock. In our previous articles we warned you that according to the freshly filed annual report the outstanding Series A warrants as of April 6 could be turned into over 21 billion shares, and that estimate was based on an closing bid price of stock of $0.0037.
With the stock seemingly being diluted almost daily it is already pretty hard to get investors excited. It gets even harder, though, when in a week three of the company’s board members decide to resign. On April 8 Mr. Greg Brauser, who also served as the president of the company, decided to leave while on April 13 and April 15 Mr. Daniel MacLachlan and Mr. William Conway III submitted their resignations, respectively.
Opportunistic traders could be able to squeeze some gains thanks to the daily fluctuations of the stock but the risks surrounding the company are simply too serious to be taken lightly. Use caution and never put unaffordable sums of money on the line. Don’t forget that VPCO are authorized to perform another reverse split at any time prior to April 15, 2017, at a ratio between 1-for-10,000 and 1-for-20,000.
