Vapor Group Inc (VPOR)

[MrDTrade]

As a result of the continuing low market price of the Registrant’s common stock and the Conversions, several Note holders have repeatedly required increases in their Reserves equivalent to many times the total possible number of shares that could be issued from their conversions greatly inflating, and escalating, the total number of shares required to be set aside by the Company as Reserves. Such increases have again eroded the number of authorized shares of common stock in the Registrant’s treasury resulting in an inadequate remaining amount of shares available for general business purposes. Therefore to maintain an adequate quantity of common stock in its treasury for future uses, the Registrant has had to again increase the number of shares of its authorized common stock.