there is one thing your friend did not make to clear and is very important. that is, the shares Vapor Group Inc. received in the deal are unregistered and the earliest they can start to sell them into the market is 1 year from the closing of the merger- and even then only a small % each month.
aside from the unrestricted shares Vapor Group received in the merger- there are 270mil O/S - after the r/s, there will only be 9mil and only 3mil in the float
PPS is going to skyrocket when news starts to hit the wire- imo