Vapor Group, Inc., VPOR, Releases Letter to Shareholders MIAMI, August 22, 2017 /PRNewswire/ --
Vapor Group, Inc. (OTC Pink: VPOR), ("Company"), today released the following letter to shareholders from its President and CEO, Yaniv Nahon.
Dear Shareholders:
We have become aware that some of you have become concerned about recent events at the Company, and are seeking clarification and more information. As your new President, I am writing to you to try to address some of these concerns, and plan to write to you regularly in the future.
Under terms of an exclusive worldwide distribution contract with EZ Grinder, Inc., a privately held company holding all intellectual property rights to Easy Grinder™, Total Vapor, Inc. a subsidiary of the Company, is the sole worldwide distributor of Easy Grinder™. It will remain so for the foreseeable future. Under terms of the contract, we hold the sole rights to manufacture and distribute Easy Grinder™.
Since its market introduction this year, we have been able to ship 12,000 Easy Grinders to date. Earlier, we had announced that we had commitments from distributors for the purchase of many more. However, we encountered serious limitations on what we were able to ship against distributor commitments due to the pre-production need to redesign critical components of the grinder, which delayed the start of initial production and slowed factory output. This in turn, forced higher manufacturing costs and resultant increases in wholesale and retail pricing. Consequently, several distributors reduced the size of their orders, backed off on commitments, or decided to delay acceptance of shipments of the higher priced product until we could prove market acceptance of Easy Grinder™. Today, we believe we have proven that the market for a superior grinder exists, that we have such a grinder in Easy Grinder™, and that our overall sales of Easy Grinder™ will continue to grow and escalate year-over-year. We are confident in our assessment based on the overwhelming positive responses Easy Grinder™ has received in online reviews, sales and from attendees at the BIG Industry Show in New York City in August, and ASD Market Week and the CHAMPS Trade Show in Las Vegas in July. Moreover, today we are working on agreements with overseas distributors for Easy Grinder™, and are working hard to broaden distribution and press coverage in order to increase consumer knowledge of, and preference for, Easy Grinder™, the world's best herbal grinder.
Businesswise, we continue to re-invent the Company. We are currently in negotiation to enter the business of selling and distributing hemp-sourced CBD oil products. We have discontinued operations of our subsidiary, Smart Wheels, Inc., due to lack of sustainable profitability in the marketing of scooters and accessories. We continue our e-cigarette and vaping-related businesses. While building and focusing on the Easy Grinder™ business this year, we continue to invest in the development of our previously announced, revolutionary 'Simple Cork', which currently has been engineered into several variations to meet the needs of different wine market niches at varying price points.
We are committed to continue to grow revenues. In the coming months, I will provide you with further updates on the progress that we are making. For now, we direct you to our recent postings of second quarter financial statements and disclosure, including particulars of our recent change of control, on OTCMarkets.com. If you have specific questions of us, please email investors@vaporgroup.com.
