SOURCE: Vaporin, Inc.

Vaporin, Inc.

September 03, 2014 08:00 ET

Vaporin Acquires "The Vape Store" With $2.6 Million in Annual Revenue

Completes Capital Raise at $0.11

MIAMI, FL--(Marketwired - Sep 3, 2014) - Vaporin, Inc. (OTCQB: VAPO), a distributor and marketer of vaporizers, e-liquids products and electronic cigarettes, today announced the closing of the acquisition of The Vape Store (www.thevapestoreonline.com), which operates four vape shops on the west coast of Florida with annualized revenue of approximately $2.6 million. This acquisition completes the fourth revenue stream in the Company's overall strategic business plan. The Company's existing online, convenience store and vending machine business model has already experienced sequential quarterly revenue growth of 130% in Vaporin's first five months of operations in 2014.

Chief Executive Officer Scott Frohman said, "The acquisition of this successful chain of vape stores will provide our management with the expertise and business model to quickly and efficiently complete a nationwide rollout of our own chain of vape stores in the very near future."

To complete the acquisition, The Company raised $880,000 from the sale of 8,000,000 shares of common stock at $0.11 per share in a private placement offering to four accredited investors. No broker-dealer was involved.

Mr. Frohman continued, "This acquisition will allow us to quickly participate in a high growth segment of the marketplace with very high margins, and profitability. Additionally, adding this fourth revenue stream is complementary to our existing three-pronged business model. The Vape Store chain brings an experienced and successful management team, established proprietary customer base and company owned distribution channel that includes retail store operations, an Internet sales channel, and additional wholesale business. This is yet another opportunity to strengthen our brand and expand our market share within the estimated $2.5 billion vaporizer industry that is projected to grow to $51 billion in 2030 by industry experts."

According to the Smoke-Free Alternatives Trade Association, an industry group, the estimated number of vape shops has more than tripled in the past year to 35,000. As thousands of vape shops have opened across the country where consumers can socialize while purchasing vaporizers along with an assortment of e-liquid flavors, sales growth has remained explosive. This acquisition provides Vaporin with the opportunity to continue to build its brand and enter this rapidly growing segment of the market. The Company also envisions making additional vape shop acquisitions.

Steve Cantrell, Founder of The Vape Store, commented, "We are very excited to join Vaporin which has done an excellent job of establishing its brand through c-store distribution and online marketing. We have similar business strategies and envision this transition to occur quickly and seamlessly. This platform will allow us to further expand our brick and mortar locations beyond the four we have established. I look forward to joining the team and assisting in this growth strategy."

About Vaporin, Inc.
Vaporin is a distributor and marketer of electronic cigarettes, vaporizers, and e-liquids products. Vaporin's innovative technology offers the look, feel and taste of traditional cigarettes without any tar, tobacco, smoke and odor. As an alternative to traditional cigarettes, Vaporin is offered in a variety of disposable and rechargeable starter kits and flavors. The unique Vaping Pens product line and Made-In-USA E-Liquid is what makes Vaporin one of the emerging brands in the market. Vaporin is not just an alternative to traditional smoking, but a lifestyle. For more information please visit, www.vaporin.com.

Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements including statements regarding future Vape Store acquisitions . The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the results of our marketing efforts including our online initiative, competition from other e-cig. companies and the major tobacco companies, our ability to efficiently and productively integrate the acquisition, our future stock price and cash resources, and new regulations which affect the distribution of these products. Further information on our risk factors is contained in our filings with the SEC, including the Form 10-K filed on March 27, 2014. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

All of the securities were issued and sold in reliance upon the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933 (the "Act") and Rule 506 promulgated thereunder. These securities may not be offered or sold in the United States in the absence of an effective registration statement or exemption from the registration requirements under the Act. The investors are accredited investors and there was no general solicitation.

Contact Information

  • Company Contact:
    Vaporin, Inc.
    Scott Frohman
    Chief Executive Officer
    305.842.2813
    Email Contact

    Investor Relations Contact:
    Capital Markets Group, LLC
    Valter Pinto
    PH: (914) 669-0222x201
    or
    (212) 398-3486
    Email Contact