Vapor Group Inc (OTCMKTS:VPOR) announced in a meeting of its Board held on May 1, 2015 that the Board Members voted to postpone any consideration of a reverse split of VPOR stock until at the earliest January 2016.
Dror Svorai, the President and CEO said that the Company disclosed earlier it won’t consider a reverse split through June 30, 2015. Also, initially it was made clear that it may or may not be given thought of in the remainder of the year. However, several shareholders were concerned that Vapor’s Board can consider reverse split in the remainder of the year. Due to number of issued and outstanding shares, they can vote in favor of it. The concern was that the decision could adversely affect the value of company’s stock owned by shareholders.
Easing the concerns
Although, the amount of issued and outstanding shares remains concern, Vapor’s Board decided to ease the concerns of company’s shareholders and decided to publicly announce that it wouldn’t approve any reverse split in 2015. The decision was taken to gain the confidence of investors. Moreover, the Board believes that the results for FY2014 and also of 1Q2015 when released, along with the management attempts to grow the company, will create value of VPOR stock over the year. In simple words, the management if of view that there is no need of reverse split as of now to increase its value. It can be achieved by implementing effective measures to support the growth of company.
Vapor Group Inc (OTCMKTS:VPOR) is actively involved in the segment of developing, manufacturing and commercializing vaporizers and e-cigarette which use latest electronic technology and e-liquids. In last trading session, the stock price of Vapor jumped more than 13% to close the trading session at $0.00170. The gains came at a share volume of 234.06 million compared to average share volume of 65.46 million.