DAVIE, FL--(Marketwired - Apr 3, 2014) - Vapor Group, Inc., formerly AvWorks Aviation Corp. (OTCQB: SPLI), (the "Company", "AvWorks", or "Vapor Group"), announced today that it had entered into an agreement on March 31, 2014, to acquire a fifty-one percent (51%) ownership interest in online reseller of e-cigarette products and accessories, American Vaporizer, LLC, ("American Vaporizer") marketer of the brand, "American Smoke". Terms and conditions of the transaction weren't disclosed.
"We have been negotiating obtaining a majority ownership in this company for some time. We have had a 25% ownership interest in American Vaporizer since its inception and believe that now is the time to increase our stake," said, Dror Svorai, President of the Vapor Group, Inc. "The American Smoke e-cigarette appeals to a market segment that wants a more traditional looking product, which is different than our other lines that look and function differently. That said, from this perceptive American Smoke supplements rather than competes with our business. Given that American Vaporizer is an established online marketer, this acquisition gives us an opportunity to enhance our online marketing of our overall brands."
He added, "This acquisition will be accretive to revenues in our first quarter and we believe that its addition will significantly add to our 2014 results. Since their startup in 2013, American Vaporizer has had rapid and accelerating growth that we believe will continue year after year. Under the terms of the acquisition, we will invest $440,000 in cash in American Vaporizer immediately in addition to the issuance of 7,000,000 shares of restricted common stock, and have incentivized the management of American Vaporizer to further accelerate their growth, including, but not limited to, Vapor Group, Inc., increasing its investment further by $300,000 if they reach $5,000,000 in sales within 6 months, and $700,000 if they reach $10,000,000 in sales by the end of the year."
About American Vaporizer
American Vaporizer, (www.americanvapor.com), founded in 2013, is an online marketer of the e-cigarette brand 'American Smoke,' (www.americansmoke.com and www.tryamericansmoke.com), and includes other products and accessories including vaporizers designed specifically for the emerging Colorado Cannabis market.
American Vaporizer's expertise is in the marketing through affiliates of its Electronic Cigarette Starter Kit and cartridges (808d battery). By letting the customer try the Starter Kit free-of-charge and signing the customer to its "Auto-Ship Home Delivery" subscription sales model, American Vaporizer has enjoyed considerable success compiling a large customer base that is currently receiving refills for its Starter Kit, auto-shipped, which provides it with a consistent, continuous revenue flow.
American Vaporizer uses a mix of marketing strategies composed of "daily deal" websites, media buys, search, online affiliates, direct response and CPA networks as well as using its own onsite SEO/SEM experts to optimize and drive organic traffic. Customers can purchase products individually or as Starter Kits.
About the Vapor Group
Vapor Group, Inc., www.vaporgroup.com, is in the business of designing, developing, manufacturing and marketing high quality, vaporizers and e-cigarette brands which use state-of-the-art electronic technology and specially formulated, "Made in the USA" e-liquids, which may or may not contain nicotine. It offers a range of products with unique e-liquid flavors that is unmatched in our industry. Its products are marketed under the Vapor Group, Total Vapor, Vapor 123, and Vapor Products brands. It sells nationwide through distributors, wholesalers and directly to consumers through its own websites and direct response advertising.
All of its E-cigarettes consist of a long-life battery, a heating element, a cartridge filled with an "e-liquid" and an atomizer which when heated, vaporizes the e-liquid. Because E-cigarettes are not "lit" like regular cigarettes, they don't create flame, smoke from burning, ash, tar, noxious fumes or leftover "cigarette butts". As a result, they may be used virtually anywhere.
Vapor Group is committed to providing E-cigarettes that are convenient and economical to use, safer and healthier than traditional smoking, and which provide a flavorful, enjoyable smoking experience.
Vapor Group, Inc. is managed by a highly experienced team of executives committed to responsible business policies and practices, including the marketing of our products only to those eighteen years of age or older, not making or avoiding claims about our product health benefits, and fulfilling the requirements of all applicable laws and regulations.
Safe Harbor Statement:
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate", "project", "intend", "forecast", "anticipate", "plan", "planning", "expect", "believe", "will likely", "should", "could", "would", "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- activities of competitors and the presence of new or additional competition and conditions of equity markets.