Vapor Corp (OTCMKTS:VPCO)’s sentiments on Wall Street have turned sour, as the stock continues to languish at lows of $0.00010 a share. Investors refusing to give the stock airplay in the market does not come as a surprise, as a lack of news means there is nothing to use to gauge the company’s long-term prospects.
Stock Dilution Concerns
The last major news out of the distributor and retailer of vaporizers came in August when the company confirmed that stockholders had approved the proposed increase of authorized shares. Consequently, the company increased the number of its common stock from 5, 000, 000, 000, par value of $0.0001 to current highs of 750, 000, and 000, 000 par value of $0. 0001.
It does not come as a surprise that investors are giving the stock a cold shoulder in the market, given the level of dilution with the recent increase in authorized shares. When it comes to the operational side of the business, Vapor Corp has also been dead silent in the recent past. In June, it reported that its subsidiary, Healthy Choice Markets Inc. had completed the acquisition of assets of Ada’s Natural Market.
Vapor Corp Long-term Prospects
The purchase price of the assets was $3 million awaiting to see the kind of impact the same will have to Vapor Corp going forward.
“We are extremely excited to have acquired Ada’s Natural Market. After an extensive search of numerous business opportunities, we are confident that this acquisition is going to be immediately accretive and will pave the way to continue our now realized goal of beginning to diversify Vapor Corp.,” said CEO Jeffrey Holman,” said Vapor CEO, Jeffrey Holman
With a lack of any substantial news, investors are only expected to continue avoiding Vapor Corp(OTCMKTS:VPCO) in the market What this means is that the stock could struggle to move up from the current trading level as uncertainty continues to send fears.