Vaporin Inc. (OTCBB:VAPO) – Another E-Cig Contender
Just two months ago Vaporin Inc. (OTCBB:VAPO) was operating under the name VALOR GOLD CORP. but apparently the mining business wasn’t that lucrative judging by the performance of their stock. Since November 2012 when it was trading for more than a dollar the ticker has been constantly losing positions and one year later it dropped to an all-time low of 4 cents.
In January the management team of the company decided to make a dramatic shift in its business operations and entered into a share exchange agreement with the private company Vaporin Florida, Inc., a developer of electronic cigarettes. Now with the completion of the agreement and the official name and ticker change from February 10 VAPO is another pennystock entering the e-cig market.
We don’t know what Vaporin Florida financial state was prior to the deal but Valor Gold didn’t exactly inspire much confidence. According to their financial report for the quarter ending September 30, 2013 they had:
- $96 thousand cash
- $392 thousand total current assets
- $433 thousand total liabilities
- ZERO revenues
- $315 thousand net loss
For the two years since their inception the company was able to amass an accumulated deficit of more than $12 million. Still they didn’t drown their shareholders in dilution and at November 12 there were 83 million outstanding common shares.
Investors will have to wait and see what the future reports will contain but at least now the company has real products in a rapidly growing industry. The e-cigs offered by Vaporin can be used with cannabis products which guarantees them a lot of interest by the market.
On Monday VAPO surged upwards by 22% on 1.8 million traded shares bringing the stock to a close at $0.16 per share. Yesterday momentum continued to gather resulting in a gain of another 23% and a close just short of 20 cents per share. During the session more than 7 million shares changed hands, an absolute record for the company. In early trading today the stock broke through 20 cents but showed some weakness and fell back down sitting 10% in the red at $0.18.
Investors considering VAPO should keep in mind that a 1-for-12 reverse split should take place in the near future as it was part of the terms of the share exchange agreement.
Currently another e-cig pennystock – mCig, Inc. (OTCMKTS:MCIG) is making a tremendous run up the chart. For the past six sessions it has climbed from $0.35 to more than 60 cents closing in the red only once. Today it is going further up by 4% trading for $0.68 at the moment. VAPO may operate in the same industry but that doesn’t mean they will be able to do the same. That is why use caution and plan your investment accordingly in order to avoid any unnecessary losses.
