VPR Brands LP (VPRB)

[Potfolio]

Diamond Rock and the $5 million offering - 1 year ago

Link: https://www.otcmarkets.com/filing/html?id=13863121&guid=WozaUeSHJMSstth

What was it?
On February 19, 2020 (the “Execution Date”), VPR Brands, LP (the “Company”) entered into an Equity Purchase Agreement (the “Equity Purchase Agreement”) with DiamondRock, LLC (the “Investor”) pursuant to which, upon the terms and subject to the conditions thereof, the Investor committed to purchase shares of the Company’s common units (the “Put Shares”) at an aggregate purchase price of up to $5,000,000 (the “Maximum Commitment Amount”) over the course of the commitment period.

At the time I could not wrap my head around why this deal was even put in place because of my understanding of this clause:

The Put Amount Requested pursuant to any single Put Notice must have an aggregate value of at least $25,000, and cannot exceed the lesser of (i) $250,000, or (ii) 150% of the average daily trading value of the common units in the five trading days immediately preceding the Put Notice.


What made even LESS sense was the 2nd part of that clause:
cannot exceed the lesser of (i) $250,000, or (ii) 150% of the average daily trading value of the common units in the five trading days immediately preceding the Put Notice

The volume back then was peanuts - even if it was 100K on average, it would mean 150K units max and at 3 cents it was $4,500. This means it DID NOT hit the first part of the clause of at LEAST $25K. What I said then, in order for this deal to make ANY sense the stock price would have to be MUCH HIGHER or have MUCH MORE VOLUME then it did in early 2020. Why go through the effort of writing up this contract this way?

Flash forward to this week.

Is this deal dead? Is this deal now alive and we are raising equity at higher valuations. Which by the way, I don't think is a bad thing at all...

The rise in stock price - was there insider buying? I haven't seen a sec filing yet so I assume not. Who was buying up the stock hand over first up to $0.25?

Would be nice for the company to explain the reasoning of this deal and if it is still alive and finally have a annual shareholder meeting to review all the great developments.