Replies to post #88712 on Vapor Group Inc (VPOR)

[Benwahsauce]

Finn the only thing anybody can assume is that the company that they merged with needed more capital to push the product further.
It's no different then if it was a private equity investment and they needed to raise capital through series funding but atleast now they took major shortcuts and will be made available to public markets.

[Benwahsauce]

Plus from a stand point of merging,
I truly believe they took advantage of the fact that it's considerably undervalued. Since the stock was trading in the range of .0003-.0001 when the merger was announced, it would have been cheap for a company to pick up this shell that was easily salvageable

[CashBowski]

What did VPOR bring to the table in this reverse merger deal? Doesn't make sense from the original company's point of view.

Answer is simple...a public company.

Do you know how much it costs to do a reverse merger into even a crappy shell? A lot!

Couple hundred thousand minimum, and extraordinary amount of time (which costs more $$$) to perform adequate due diligence on the shell as often times shady deals that were hidden in the original merger documents can show up to bite you in the arse. Beside proper diligence, finding a public shell that's trading and has an established investor base can prove even more daunting.

So, what VPOR brings to the table is an enormous advantage...

First, the private company in exchange for their patents get to merge with an established public company which is a huge plus when presenting their product to distributors -- second, they just moved ahead exponentially by highlighting their innovation to the general public vis-a-vis targeted press releases -- and finally they get a 2 for 1 deal with the spin-off of Total Vapor, which I'd assume they'd be part owners.

So, without knowing the details of the closing documents, I'd say everyone got a good deal.