MIAMI, FL--(Marketwired - Aug 24, 2016) - The Board of Directors of Vapor Group, Inc. (OTC PINK: VPOR), (the "Company") announced today that the Company has entered into a "Letter of Intent" for a reverse merger with a privately-held corporation. Details of the merger were not released pending negotiations of its terms and conditions. Closing of the transaction is expected not later than September 30, 2016.
The corporation merging into Vapor Group, Inc. holds U.S. and foreign patent rights in several countries for a new type of bottle closure to be used by wineries. The U.S. wine industry alone consumes billions of closures in bottling operations yearly, a sizeable portion of which can be replaced by this new closure, as can a sizeable portion of the multi-billion unit wine bottle closure market worldwide.
Consequently, the Board of Directors of Vapor Group believes that the sales potential of this new type of closure, currently nearing engineering development completion, when marketed directly to wineries and enterprises using similar closures, will represent a huge incremental gain in future revenues and profits. To that end, once the merger is complete, the Company plans additional multiple, foreign patent filings in 2016 and 2017 which will represent an extension of its current patent filings, and the addition of new patents and intellectual property for related products and technologies. Given the nature and extent of the patent and intellectual property portfolio, once the additional filings are underway, the Company, post merger, plans to engage an outside appraisal firm to assess the value of the patent portfolio worldwide. For the products currently protected under U.S. and foreign patent, engineering completion, and on-site application testing is anticipated to be completed this year, with active product marketing rollout beginning near the end of the 4th quarter of 2016 and into 2017. The Company, post merger, will also explore the possibility of the licensing of its patents inside and outside of the U.S.
Dror Svorai, President and CEO, added, "For us, this is a major game changer. Completion of this merger will significantly change our central product focus, and significantly alter our management structure and methods of operations. Although our subsidiary businesses will continue, the majority of our energy and resources will be put into the merging corporation's products and capturing incremental revenues and profits. It will re-form our business. As we progress towards the closing of the merger, additional information will be released."
About Vapor Group, Inc.
The primary focus of Vapor Group, Inc., www.vaporgroup.com, is the design, manufacture and marketing of high quality, vaporizers and e-cigarette brands which use state-of-the-art electronic technology and specially formulated, high purity "Made in the USA" e-liquids with and without nicotine. These products are sold under the Vapor Group, Total Vapor, Vapor 123 and Vapor Products brands. The Company also markets cutting-edge consumer products including the "Whizboard" brand of scooters sold by its subsidiary, Smart Wheels, Inc. All Vapor Group products are sold nationwide through distributors and directly to consumers through its own websites. The Company owns and operates the following subsidiaries: Total Vapor Inc., Vapor 123 Inc., Vapor Products, Inc., VGR Media, Inc. and Smart Wheels, Inc.
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.