Vapor Group Inc (VPOR)

[SooS416]

Why would they set the price at .15 and why would Hanover accept.

Obviously Vapor Group already knows there Q1 numbers and has a good estimate of Q2 & Q3, with that I am certain they picked a conservative number that would allow Hanover a nice profit. Remember that are putting a 30% premium on an early payback, so they want a minimum of 30% ROI. That would put the stock at .195/share

Also, they put the payback/conversion only 6 months away on 10/29/14, giving them time to present Q2 & Q3 with American Smoke fully contributing and feeling the effects of the added help from Vapor Group. Add to that we would expect additional sales from CBC oil sales and attention to the stock over the summer for WA rollout.

There is no way Hanover would accept this deal with these terms unless they felt they could achieve at least 30% return. And isn't it nice to see a price in a convertible note higher then the current share price, if that doesn't show confidence i don't know what does.

Additionally, I would like to see the Vapor Group get in front of the FDA regs even more by trying to become the "Gold Standard" in the industry. They should reach out during this comment period and talk to the FDA about their process and how they feel that it is the pinnacle of how e-juice should be produced. In doing so they may become endorsed and be the model for how all other companies must manufacture there product. And if that were to happen they instantly become the industry leader and prime target for big tobacco. Also, on a even more speculative note, i imagine they have a hash oil product in their back pocket but do not want to cross the line quite yet.

In summary

-Hanover expects at least 30% return (At least .195 by 10/29)
-Q2 & Q3 earning with full American Smoke & CBD oil sales
-July Washington rollout
-American Smoke Ad Campaign/Celebrity Endorsement
-Investor relations department

I think there might be some more surprises along the way as well.