Vapor Group Inc (VPOR)

[Tony_the_Tiger_1973]

It was to ramp up supply to meet extremely high demand. The note was for 1.2m. If you had a business idea that paid 50-60% returns (their gross profits), wouldn't you be willing to double the size of your investment if the cost of capital was cheaper than your expected return? It's called economies of scale.

Example: I know of a low risk security that pays a guaranteed 11% dividend. I would be willing to take a loan for any interest rate under 11% to take advantage of the arbitrage opportunity.