The one thing about this company that I truly don't understand is the warrant situation, according to the company there were approximately 8.1 million warrant shares, and by my calculations all but a very few must have been dumped by now. If we take those 8 million away that leaves maybe 2.5 or 3 million shares outstanding, (I am allowing for another 500k dilution) did the company buy back those warrant shares as they were dumped into the market? If they did not then they would not hold a very large share of their own stock, there aren't any insider filings to suggest that they do. My interpretation of this is that it was in the interest of VAPE to "watch" the price fall naturally as the warrant holders dumped shares, while scooping up those shares. If in fact this is what happened then this company is a lot more tightly held then people realize, and will sky rocket on news of substantial revenues. I believe the price only came down precipitously due to the dumping of warrants, and why would the company do anything to stop that free fall if they stood to reap the benefits of s stock buyback on the cheap. I would appreciate an honest critique from a knowledgeable long (maybe yourself) on this theory.
Thanks!
