We warned you a long time ago that this company is simply printing BILLIONS of shares so that the Unit investors can get back their $42 million invested PLUS another $42 million.
Either way the unit holders can sell and demand more and more and more and more shares until they get their money back.
So when the stock keeps going lower, it does NOT affect them one way or another.
There is NO limit as to how many shares they can get it is simply about how many dollars they can get back.
With this formula they will keep doing reverse splits and will keep authorizing ZILLIONS of shares.
By the way something that is not talked about is that the Unit holders can DEMAND cash straight from the company if this scandalous selling and printing of endless shares doesn't work. This could force Vapor into Bankruptcy.
On July 30, 2015 Vapor Corp closed on a $41.4 million public offering of TOXIC Securities.
The ONLY purpose of this structure is to ensure that the $41.4 million that was invested will return $82.8 million dollars to these investors.
This stock is 100% a death spiral, whereby the Units holders can keep selling shares and at the same time demand certificates DOUBLE that of what they sold.
With this formula and ENDLESS stock splits the goal is to trick unsuspecting investors to buy what they believe is cheap stock when in reality new investors buying shares stand NO chance!
If they reverse split the stock by 1000 times which would put the stock at $10, these $41.4 million unit holders will SELL like crazy in order to try and get the $82.8 million dollars.
Once it goes from $10 back to 1 cent, the company will do another 1000 to 1 reverse split again and this will go on and on and on.
Those buying these shares are COMPLETE idiots
SKYLINE MEDICAL INC 191,446 --- -- 13,519.09 --- 51,530.82 38,011.73 281.17 Multiple
Above from my shares sold through TD Ameritrade from Warrant conversions (191,446 shares converted for free). Navn, stop spreading lies
Josh Kornberg (CEO) 2015 salary and bonus $562,941
David Johnson (COO) 2015 salary and bonus $358,926
Bob Myers (CFO) 2015 salary and bonus $305,300
Total Revenue 2015 $654,000 (negative operating cash flow $7.5 million)
All you long shareholders have seen the stock price go from $4/share recently to about 20 cents/share.
Is it not sickening to see the massively inflated salaries and bonuses management has awarded themselves.
The CEO's take was almost as much as the TOTAL revenues the company generated last year
Mostly agree with you. If the company can show substantial growth then the valuation is fair at these prices and could go up if their business model works before they need more money.
I am not being bearish, but most don't understand how these warrants work and the massive dilution that just took place
With the approximately 76.3 million new shares now issued at 21.5 cents for FREE to the Unit holders, I think we are now near fair value at a $21 million dollar valuation. (100 million shares issued and outstanding)
If the company does not turn cash flow positive soon, it appears they might need to do another financing - and we all know where stocks go when there are secondary offerings/reverse stock splits.
With anemic sales so far, I am not convinced this stock is worth even 21 cents or a $21 million valuation.
For those who think this is a death spiral, they are totally WRONG, as all the financing conversions were done at 21.5 cents and all the unit holder warrants are now gone.
Although the price of the stock has gone from $4 to 27 cents, the Valuation even at 27 cents is MUCH higher than when the stock was at $4.
Why? See below, with a Black Scholes Value of the Warrants with a conversion floor of 43 cents, the company in effect just issued 76.3 million more shares to the Unit holders for a purchase price of 21.5 cents (converted for FREE).
With 100 million shares now issued, at 20 cents this company is still valued at $20 million.
Since all the unit holders who now own the company just got 21.5 cents shares, it seems logical that the price of this stock should settle somewhere around 21 cents.
C is the closing bid price of the Common Stock as of two trading days prior to the time of such exercise, provided that in no event may “C” be less than $0.43 per share (subject to appropriate adjustment in the event of stock dividends, stock splits or similar events affecting the Common Stock).
As defined in the Series A Warrants, “Black Scholes Value” means the Black Scholes value of an option for one share of Common Stock at the date of the applicable Cashless Exercise, as such Black Scholes Value is determined, calculated using the Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg utilizing (i) an underlying price per share equal to 55% of the Unit price, or $4.95 per share, (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of the Series A Warrant as of the applicable Cashless Exercise, (iii) a strike price equal to the exercise price in effect at the time of the applicable Cashless Exercise, (iv) an expected volatility equal to 135% and (v) a remaining term of such option equal to five years (regardless of the actual remaining term of the Series A Warrant). The Cashless Exercise feature of the Series A Warrants provides for the issuance of a number of shares of Common Stock that increases as the trading market price of the Common Stock decreases, subject to a floor price of $0.43. If all of the 7,580,040 Series A Warrants that were issued as part of the Units sold in the Offering and part of the Exchange Units issued on August 31, 2015, as described below, were exercised pursuant to a Cashless Exercise and the closing bid price of the Common Stock as of the two trading days prior to the time of such exercise was $0.43 per share or less and the Black Scholes Value was $4.326 (the Black Scholes Value as of August 28, 2015), then a total of approximately 76.3 million shares of Common Stock would be issued to the holders of such Series A Warrants. The potential for such dilutive exercise of the Series A Warrants may depress the price of Common Stock regardless of the Company’s business performance, and could encourage short selling by market participants, especially if the trading price of the Common Stock begins to decrease.
Hard to buy a stock that has no volume. Harder to sell it with no volume.
Insiders will need to buy more stock before I become interested.
It is a real shame that this company has to continually raise more and more money through private placements at lower and lower prices just to continue its research and trials.
Are you all concerned about a reverse stock split and more financing at even lower prices with tons of dilution down the road?