Replies to post #53974 on Vapor Group Inc (VPOR)

[Spuds McKenz66]

biz will double in 2015

[Spuds McKenz66]

We believe that by mid-2015, we will be able to reduce our current debt burden significantly and perhaps even eliminate it entirely, as the result of the continued, accelerated revenues that we are producing month to month. VPOR

[Vnegs]

This is the only post you have made that is true.

I too believe cash is being hoarded to make sure there is enough for inventory when the time comes.

[uksausage]

Actually he could sell shares direct to the market to raise cash if he really does need it for inventory which I doubt. he can raise 3-4 times the money for the same number of shares as he had in debt.

the inventory was built up in Q2/3 last year and should be replenished as sales go. Normal bank funding should be available for this sort of thing.
he also has that huge cash pile in the bank which I know has to fund some franchize startups and fees but what else?

In a vacuum/perfect world you are right. But right now cash is king and he needs it for inventory.

Let's say he used the company's cash to buy back the notes, great. But then what happens when he has to rebuild inventories with no money? He'd have to go take toxic funding somewhere and start the whole process over. he also knows that he'll be able to buy back cheap share b/c of the conversions.