A couple of days ago I sent Dror an email with questions I had. He was kind enough to respond . I am posting the questions and answers here for informational purposes. I think we are very lucky that he and Yaniv lead our company. See Below:
Doctor,
Great to hear from you again. I hope all is well.
Let me try to answer your questions in the order you posed them:
1. As our volume builds we will migrate to automatic filling machines. The capital investment is significant, so we have to pass a certain economic threshold to make it feasible.
2. In terms of unit volume, probably the liquids, but in terms of dollar volume the products themselves.
3. The franchise effort continues to move forward and we see it as a parallel strategy to resale distribution. At the early stage we are at, we need to establish “brand presence” through our own retailing (e.g., franchising) and not relay on distributors alone which categorically can be fickle.
4. Yes, we are on the road to legal mj use, but not without setbacks and hurtles to jump. Moreover, we expect it will take some time, and be a battle state-by-state. Moreover, we don’t think we have heard the last from the federal government. We expect eventually high levels of federal regulation.
5. I, and our management team, are still optimistic and doing our best to constantly innovate to meet the demands of an evolving market. Our team payoff is only if we get huge. So, we are committed to becoming a huge company.
6. At this early stage, the pps is not as important as with more mature enterprises. We are young and a start-up. At this stage it is typical to trade off earnings for investment in intangible market development that will set the stage for a good pps later.
7. We do not believe we are in any danger of being delisted. Although the share price is low, the share volume per day (for OTC) is generally good. That means that there continues to be interest in the stock. As long as we keep current on our filings, etc. , we should remain OK.
Best regards,
Dror Svorai,
President/CEO
Vapor Group, Inc.
3901 S.W. 47th Avenue, Suite 415
Davie, Florida 33314
Office: 954-792-8450
Fax: 954-916-7548
dror@vaporgroup.com
www.totalvapor.com
www.vapor123.com
www.thevapor.com
-------- Original Message --------
Subject: questions from stockholder
From: wmeshel@aol.com
Date: Sat, December 13, 2014 1:23 pm
To: dror@vaporgroup.com
Dror, Hi. First let me tell you how happy I am with the direction you are taking the company. The website just gets better and better and very well done.. As you know I also have serious holdings in VPOR and I wondered if you could answer a couple of questions I have;
1) The actual mixing and bottle filling of the e-liquids seems to be very labor intensive. At some point will we need to upgrade to a more mechanical method of production.
2) which part of the company should see the most growth i.e. the liquids or the product line
3) You have said that the process to file the legal papers to starting franchises is a really tedious process. Does this franchise activity still seem to be important to our growth or is it superceded by the prospects with distributors . Will we still pursue this
4) Do you believe that we are still on a trend towards legal mj use and how do you see that affecting us
5) long term, i.e. several years; are you still as optimistic as you have been. Will this company be huge years down the road ?
6) Does the pps have any impact on our viability as a company ?
7) Are we in any danger of being delisted and if so what does that actually mean for us. Is their anyway to avoid this
Hope everyone is well there... Thank you very much
Bill Meshel
wmeshel@aol.com
