Replies to post #52335 on Vapor Group Inc (VPOR)

[Bernie-UK]

I agree. The heavy selling concerns me when I watch but I also believe that we will see great returns here. It would be great if they held back now and allowed it back above 0.004 like they have before.

It's all very logical for a company that doesn't just want to dilute the hell out of the stock and do a RS to start over. Like I said before, the relationship between us buying and them selling relies on them keeping the price in this channel. They've been tested on that several times and have resisted selling lower.

I'm just keen (as I'm sure everyone else is) to get this chapter over and get on with the increases that will follow.

[Cheds]

Sooah Moon VPOR DD

2. Debt structure

The price of common stock took a beating due to two reasons. Increase in A/S to 2.5 billion and dilution that started between August 19th to date. The two are related to the amount of convertible debt $VPOR took in 2014 to fund growth.

Looking at the O/S increase from 8/19/2014 to 11/13/2014, we see an increase of 86,290,641 shares. I took a look at VPOR's chart and was able to get an average conversion price of 1.5c. What this means is that $VPOR was able to eliminate about $1,29 million in toxic debt with these issuance. Looking from 11/14 to date, we can project an addition of another 200 million shares to the O/S at an average conversion price of 0,005 which is elimination of another $1 million in debt.

What is exciting--not depressing--about conversion of debt since 8/19/2014 to date is this: $VPOR looks to have cleared at least half of its convertible debt if not more. I will remain on the conservative side and go with half for now but my quick review is giving me elimination of $2.2 million in debt.

Expect $VPOR to give an update and announce significant elimination of convertible debt!

3. Magna - VPOR's principle lender

Magna and VPOR revised the April convertible notes--conversion price is no longer fixed at 15c (makes no sense for Magna) but is 30% discount lowest market with a 5 day look back. Compare this to the typical 60% discount to market with a 15 day look back and you will see that Magna's notes are not as toxic as people think and this lender to $VPOR is more friendly than it usually is to other issuers.

Also on the date that the April notes were revised, $VPOR also prepaid a part of a note. I expect this pattern to continue and more lenders will give financing to $VPOR based on the revenue growth it will have and the fact that we're looking at sustainable growth.

With new loans that $VPOR obtains, cash from operations and controlled dilution, we can expect this issuer to become toxic debt free in no time and not too long into 2015, it should generate enough revenues to be self-funding, if not qualify for traditional financing should it opt to do so.

The A/S relative to the debt level is adequate to not worry about stock splits. O/S (estimated 650MM shares) is still small for what the company will be doing.

Plenty to be excited about here on $VPOR.




BigCheds