Vapor Group Inc (VPOR)

[Cheds]

Cheds - Could you please comment on these

** No problem
1.
Note holders will benefit more if they wait until maturity than selling below par , no ? Unless they hear company may default on the debt.

** Depends, common sense would dictate they would hold if they believe in the company just like a shareholder, but often times conversation rate and pps are written up in a contract at the time an note is funded,. IMO the majority of the time they just convert at whatever PPS because its all gravy

2.
Thinking through debt, I see some risk now. What if note holders can not convert to stock and company doesnt have cash to pay debt. There was a clause in the agreement that if stock price goes below .008 or something, it is considered as default, though now it is removed.

** I view the risk level on their debt to be at the lowest level yet. For the first time there is no evidence of taking on any toxic financing in a year, and thus 15' so far is clean. Examine fins, cost of revs going down at a solid rate

I'm been holding this stock for awhile now, but EC*G looks better buy now.

**Not too familiar with EC. Whats your average here? that would dictate the correct strategy

BigCheds