Vapor Corp. (NASDAQ: VPCO)
(NASDAQ: VPCOU), a leading distributor and retailer of vaporizers, e-liquids,
e-cigarettes and e-hookahs, provided investors with an update on the company’s
future growth strategy on Thursday following the close of a $41.4 million
capital raise.
“Following the completion of our
recent public offering, we are extraordinarily well funded and well-positioned
to execute against our business plan swiftly and judiciously,” Jeff Holman,
chief executive officer of Vapor Corp., stated in a news release. “This
significant infusion of capital will allow us to accelerate our retail
expansion through a combination of new store launches and a roll up, in the
form of purchasing existing, profitable vape store locations.”
Currently, the company’s retail
network includes a collection of ‘Vape Store’ locations – including six that
were acquired as part of its recent merger with Vaporin, Inc. In the first
quarter of 2015, Vapor Corp. opened four additional locations, and the company
has announced plans to open as many as 30 more by the end of the year.
“As the vaporizer and e-liquid
market continues to mature, there is a tremendous opportunity for Vapor Corp.,
to capitalize on its industry knowledge and proven track record of launching
and supporting a successful retail store concept,” continued Holman. “We are
confident that consumers will react favorably to our expanded retail and
branded presence.”
Although the market for
traditional cigarettes has fallen by nearly 30 percent since 2004, according to
a report by Euromonitor International, sales of e-cigarettes have recorded
tremendous growth in recent years. Currently, the electronic cigarette industry
is estimated to account for $1.5 billion in annual revenue, and annual growth
of 24.2 percent is forecast through 2018. For Vapor Corp., this continued
market performance could provide a platform for considerable growth in the
months to come.
For much of the e-cigarette
industry, looming Food and Drug Administration (FDA) regulations are a
considerable threat to the performance of what has, to this point, been a
largely unregulated space. However, Vapor Corp. views the possibility of new
regulations as an opportunity to increase its market share in one of the
country’s fastest growing sectors.
“[T]hese regulations will likely
make it more difficult for smaller, local vape shops to remain in business,”
Holman stated. “Vapor Corp. is cognizant of the opportunity that this presents
for the company to make reasonably priced acquisitions during its consolidation
efforts.”
In recent months, Vapor Corp. has
made significant progress in transitioning from a primarily wholesale
distribution strategy to a more direct go-to-market business plan. For
prospective shareholders, the company’s rapid development toward its goal of
becoming the first national retailer in the thriving electronic cigarette
market makes it an intriguing investment opportunity moving forward. Look for
Vapor Corp. to leverage its established market position and scalable retail
strategy in order to promote sustained growth for the foreseeable future.
For more information, visit
www.vapor-corp.com
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