And even then, it would go back to 2 cents.
Reverse split is not going to save the share price. They will need 300-1 at these levels for even a prayer to exercise all the warrants.
It would be back to 2 cents within 25 days.
The common holders have lost 99%, the preferred holders got some nice gains the last few months but had no choice but convert to common, are getting destroyed, and immediately de-listed - or the warrant holders that got stopped by the Nasdaq to convert shares and no have to wait several months, if at all - to get the $ back from July in pink slip land selling shares for fractions of a cent recouping $40M. Last but not least, the owners of the private LLCs that bought the shares (assuming they weren't just created for personal losses and tax write offs) that bought between 20-90c a share and a month later they are 2 cents and delisted.
Simple: The CEO must resign. Immediately.
Its going to get approved. The 3 new LLCS that bought 28% of the company before the end e year, and before the cut off, the 6% owned by insiders is 34% of total shares. Whoever doesn't vote, our side, I think, but not positive, that goes as a yes as well. So before the vote, you as a regular common share holder are looking at trying to get 90-95% of the remaining votes on your side (NO) which is not going to happen. Just sl and be done with it. My sell order is in at .036 to get the h*ll out of here
Share failure lasts as long as it takes to get a reverse split approved or more shares authorized - then as soon as they hit the market, the preferred shares and warrant holders can resume converting into common shares and selling (diluting). However, it appears that the nasdaq will not give them the grace period until March - so yes, once this hits OTCC markets this will plummet. I'm sticking around for one last bounce before that happens, but the CEO is worthless - I sent an email a page long stating why he should resign immediately.
100%+ gain for a stock being delisted? It would be haulted and the next time it opened, it would be OTCC and lose 50% in 10 seconds lol.
They will expense the Nasdaq meeting and tell shareholders they fought it to the very end, that they needed experts weeks ahead of time prepping, a private jet to prepare for the meeting for execs and attorneys, several hotels for a week with conference room rentals for meetings, breakfast lunch and dinner everyday for their team, attorney fees for weeks, and follow up work totaling $1,00,000.
When really, it was a phone call that lasted 5 minutes in their office and they agreed to the delisting.
As for inventory, probably hire a guy for $10 an hour, tell the shareholders he makes $200,000 a year, to ship orders to their couple last distributors at steep discounts until it's all gone. Probably keeping it in a public storage unit for $100/month - and tell shareholders it's $6,500/month.
The LLC in the Caymans probably got the $30M wire transfer this morning from the VPCO operating account. The CEO and his execs are probably chartering a private jet to leave after the shareholder meeting from Miami Dade airport to Grand Cayman to play some golf and talk about the next business venture.
Probably leave the agent in Boca Raton to convert the rest of the warrants and handle the paperwork of trading on the OTCC the next 12 months till the company hits .0001/share until it either gets dissolved, or rolled into a new drone or body camera company.
Nothing left to see here. Just another CEO lining his pockets in South Florida shipping the riches offshore trying to get away with it as long as possible. Today, the gig is up.
Wanted to keep the 30 million in the bank, and dilute shareholder value 99.99% to satisfy warrants while opening LLC's to buy votes in the Cayman islands. Talk about a loser.
It's too bad that the execs and their buddies set up 3 LLC's before the end of 2015 and each LLC bought 30% of the common shares. Giving them 30% ownership in those new LLC's alone. The execs knews this was coming. One of the LLC's is based in the cayman islands. Your money is gone, it's in the caymans already, along with that $30M.
VPCO doesn't care about being listed on the Nasdaq. Management knows they are not going to succeed. They are going to continue converting and get the delisting - then when they hit the OTCC market they will dilute all the way down to .0001, burn through the 30 million in the bank - and when the company and investors are left with nothing, the company will dissolve and the Execs will move onto the next company. IDK why common shareholders think the CEO or Execs care for 1 second about the shareholders or the company itself, they only want to pocket as much money as possible to buy the biggest house and the nicest cars in south florida, send their kids to private school, take lavish vacations to the caymans (that's where the LLCs are that own this POS company) and when it's over - they start something new or roll this worthless shell into another company in a different sector - and try to find saps that bought into this company to buy into the next one. Sell any bounce, if one happens. I doubt it will.
The agent is now selling the converted common shares from all the preferred and warrants 100 shares at a time every 4 seconds, not caring what the bid is, but just selling it to the highest bid every 4 seconds until all the preferred shares and warrants are converted. This could go to 1 cent - and a 70-1 split would only take it to 70 cents - how sad. Say goodbye to nasdaq.
Ok...so here is what I have found.
The 3 companies, 2 in which the CEO has his name on, besides running VPCO. So what I am assuming, Is the two LLC companies that bought the 1M shares or so for 9% ownership (estimates) bought near the end of the year last year, causing the stock to rise. Thinking they are smooth, because this is really good, they probably bought in lower on one of them and as the price went up dramatically, bought those with another company.
Now, you would think, that if you bought 2 million shares of a company, you would want them to go up and make a profit on those shares, right?
But what if, you knew, that they would never go up - so whats just as good as making money in an LLC? LOSING MONEY. Especially if you are making millions running a public company that is losing millions and will never turn a profit. But you, personally on the other hand, need a write off to get out of taxes.
So if his LLC's had an avg of 40 cents a share for the 2M shares, or $800,000 USD between the two business as an investment, that's the skin in the game. Seems like alot, but it gets better...
So after the reverse split, the 2,000,000 shares after 70-1 will be about 29,000 shares, and the value of each share at 3 cents a share is $2.10. So the net worth, since the shares have dropped so much in value to date, is $58,000. So the two LLC companies are down $750 grand, or $375,000 each.
So why would anyone in their right mind be ok with that?
Well, If your main company had an endless piggy bank, and you can have your buddy in Boca sell 100 shares every 4 seconds to put $$$ in your corporate account, which already has 10's of millions in it, and you are already paying yourself, and it doesn't even matter if it succeeds or not, and already have the losses in your other LLCs to offset any income you have, you not only take all the investors money, but you don't pay taxes personally either. Smart guy. I wonder how many LLC's hes on by now......
The three new companies that each hold 8.75% of VPCO had the shares on December 31, 2015. Common stock ownership on or before January 7th 2016 get to vote for the reverse split. So now you know why shares went up to 95 cents through the end of December, and sold off immediately after the three new companies, which one is off the coast of florida (where they are based) had all the shares they needed to approve the reverse split - and not only keep the $30M they have on the bank but to issue millions of more shares after the 70-1, wiping out all value of shareholders that held before the reverse split.
Any time you see a start up company in a hot sector, especially in Florida, short it to ZERO.
I just looked at their Amended Statement of Ownership of the company, and 3 LLC's each hold 8.75% of the company - all which are new reporting ownership, as of 1/14/15 - one in which is located in the cayman islands.
So they hold 25.5% in those three new entities alone of all common shares to vote for the reverse split. That does not include other ownership before then, this 25.5% is all brand new.
Default on the financing terms, more selling, delisting, trading on the OTCC market, with shares going to .0001 and probably bankruptcy.
Think of it this way....
What would YOU do, as a preferred share and warrant holder, if YOU gave VPCO $40 million dollars in July 2015 and 6 months later when you could start converting your preferred and warrants into shares to sell on the open market...you COULD NOT...because VPCO stock went to 4 cents and the amount of shares they have available to issue doesn't NEARLY cover the $40M+.
Then to solve the issue, they try to vote on a reverse split, but common share holders vote NO.
So YOU...as a PREFERRED shareholder and WARRANT holder that came out of pocket 40 million...you think YOU would care or give a rat's #$%$ about the common shareholder?
So you would say fine....we are going to convert all our preferred and warrants as fast as possible while the share price is as high as possible for the common - all the way to 500 million. In turn, the share price will go to .001 and the common shareholders have 2 choices at that point.
1 = Never get back a penny and the company fails.
2 = Approve the split, and maybe...just maybe....one day....after all the dilution is over and several quarters go by....then MAYBE you will get your money back and turn a profit.
VPCO execs in July 2015 offered preferred shares and warrants to raise the money they have in the bank as of today. Obviously they did not get that $$ from operations and turning a profit, nor did they get it from a loan at a bank. So how did they get it? They gave away preferred shares and warrants to the company which entitled the holders to common shares.
So why is that bad?
Well, it wouldn't be so bad if the stock price was $10 or so, and the market bought and traded VPCO regularly in the millions of shares, but they do not.
Since VPCO in the market cannot sustain or suport such selling pressure from the preferred shares and warrant holders, converting their shares and warrants into common shares and selling them, the price plummets. Now at 4 cents per share, 100's of millions of shares are needed to satisfy the liability tied to the 30 million they have in the bank.
After the reverse split, common shares will be diluted 100's of millions of shares - resulting in a share price back to .03 - leaving your shares today virtually worthless, as the company enjoys getting out of their liability and the same market cap they have today - while taking your money and diluting your shares to almost zero.