VPR Brands LP (VPRB)

[Potfolio]

Coming Catalyst to Drive Valuation to $33M or $0.50 By March

Here are a few catalyst off the top of my head that will have the share pricing driving higher over coming weeks and months (excluding the "momentum traders")

1. Company is well positioned with HONEYSTICK and other private label vaporizers to benefit from the CALIFORNIA recreational launch on January 1st. The company has stated in filings that a majority of revenues going forward are from the VAPCOR Q3 2016 acquisition. They don't touch the cannabis but work hand in hand with the channel --- but "majority of revenue white labeled"

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12395008

Here is a video presentation on the companies strategy.

(at this time was $.50 - more of a fair valuation)


2. The price has been depressed due to the convertible loan that was a vicious cycle --- and shorting. The stock bottomed at $0.01. Good news - the convertible loan is nearly over (if not finished now) and the company sold future receivables at a discount to grab $240K in cash to fend off further dilution. The CEO PERSONALLY GUARNTEED the loan with Orange Door Capital.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12414601

3. Vaporizer industry is going to grow at a 23% CAGR to $50 billion by 2025.

https://bisresearch.com/industry-report/electronic-cigarette-market-size-forecast.html

4. The CEO has literally done it before...with the same product line up! The CEO was the former CEO of VAPCOR that went from $2 million in sales to $28 million --- ultimately from Pink's to OTC to NASDAQ. Here is a brief video before he left VAPCOR when he was on CNBC.

https://www.cnbc.com/video/2013/12/19/e-cigarettes-regulation-will-be-good-for-clarity-ceo.html


He left before the company went down the drain as they invested heavily into retail stores.

5. VPRB has a great online presence. They also own the website..

http://www.vaporstoredirect.com/

6. Due to their online selling and private label business there gross margins have improved for 4 consecutive quarters up to over 40%!

7. Turned a profit in Q3!!!

8. Going to finish the year with $4M in sales...with huge growth potential with recreational cannabis in California. In addition a new revenue stream opened up....

9. With the FDA ruiling in August they can now have a "free runway" until 2022 selling E-CIGS. This is important because when Kevin (CEO) was w/VAPCOR this was his bread and butter and crushed the growth of the KRAVE and other brands. See news release and comments from company below.

"will reinvigorate the ecig industry and that puts us in an opportune position. Both our KRAVE and our VAPORIN brand of e-cigarettes are still very popular and gives us the foundation on which to start increasing sales within the ecig category," says Kevin Frija, CEO of VPR Brands LP. "We will begin shifting our focus back into the ecig category where our brands were once the top industry performers and now with a new 5-year clear runway from the FDA will allow us to grow sales and penetrate the market once again."

https://finance.yahoo.com/news/vpr-brands-lp-welcomes-fdas-123000860.html


10. Share count is relatively small at 65M and it is a LP (why they have 99B O/S...). Kevin has a majority stake and big skin in the game.


Overall, $8M in sales is not a huge stretch for VPRB in 2018 -- which most of these companies trade at 4x sales which would put valuation at the $33M or $.50. However, long term....a VASTLY growing industry...a STRONG experienced CEO....has this company positioned to potentially become $50-100 million valuation over next 12 months ($1++).

Shares are still cheap. Might not go straight up but this stock is more then just a flip. Stay Awhile and Enjoy.