vapor corp (VPCO) Key Developments
Vapor Receives Non-Compliance Notice From NASDAQ
May 26 15
On May 19, 2015, Vapor Corp. received a deficiency letter from the Nasdaq Listing Qualifications department notifying the Company that for the last 30 consecutive business days the Company’s common stock had closed below the minimum $1.00 per share bid price requirement for continued inclusion on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided an initial period of 180 calendar days, or until November 16, 2015, to regain compliance with the bid price requirement. If, at any time before November 16, 2015, the closing bid price for the Company’s common stock is $1.00 or more for a minimum of 10 consecutive business days, the Staff will provide written notification to the Company that it has regained compliance with the bid price requirement. If the Company does not regain compliance with the bid price requirement by November 16, 2015, the Company may be eligible for an additional 180 calendar day compliance period provided that it meets the continued listing requirement for the market value of publicly held shares and all other initial listing standards, with the exception of the bid price requirement, and provides the Staff with written notice of its intention to cure the deficiency. If the Company does not regain compliance by November 16, 2015 or the termination of any subsequent compliance period, if applicable, the Staff will provide written notification to the Company that its common stock may be delisted. In anticipation of receiving the Staff’s notice, on May 12, 2015, the Company filed a preliminary proxy statement on Schedule 14A with the Securities and Exchange Commission, followed by a definitive proxy statement filed May 22, 2015, in connection with the Company’s 2015 Annual Meeting of shareholders that included a proposal to approve an amendment to the Company’s Certificate of Incorporation to effect a reverse stock split. The Company’s Annual Meeting is scheduled for July 7, 2015. There can be no assurance that the Company’s shareholders will approve the amendment, or that a reverse stock split will prevent the Company’s stock price from falling below the bid price requirement in the future.
Vapor Corp. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2015
May 15 15
Vapor Corp. reported unaudited consolidated earnings results for the first quarter ended March 31, 2015. For the quarter, the company reported sales, net of $1,468,621 against $4,792,544 a year ago. Operating loss was $3,530,855 against $2,176,725 a year ago. Loss before income tax expense was $3,981,196 against $2,205,159 a year ago. Loss per common share basic and diluted was $0.18 against $0.09 a year ago. The company experienced a decline in sales for the first quarter of 2015 on a year over year basis from 2014. This is primarily due to a shift in the company's wholesale strategy that focuses more squarely on limiting sales to retailers with higher and faster sell-through capabilities. Net loss was $3.98 million compared with a net loss of $1.45 million for the quarter ended March 31, 2014. This increase is a result of the decline in revenue, e-cig product returns that led to liquidating certain inventory, and costs associated with a new go-to-market strategy currently being implemented.
Vapor Corp. Announces Executive Changes
Apr 23 15
Vapor Corp. announced that on April 17, 2015, Robert Swayman resigned as a director of the company as a result of his ceasing to be independent. On April 18, 2015, the company appointed Mr. Daniel MacLachlan as a director replacing Mr. Swayman. Mr. MacLachlan served as the Chief Financial Officer of The Best One Inc., from October 2014 through early February 2015, facilitating its merger with Tiger Media Inc.
Vapor Corp. Announces the Resignation of Harlan Press as Vice-President of Finance, Effective on April 10, 2015
Apr 2 15
On March 27, 2015, Vapor Corp. announced that Harlan Press notified the company of his intention to resign from the company, effective April 10, 2015. Mr. Press previously served as Chief Financial Officer of the Company. In connection with the company’s previously disclosed merger with Vaporin Inc. in March 2015, Mr. Press was appointed Vice-President of Finance of the company.
Vapor Corp. Announces Expansion of Retail Store Operations
Apr 2 15
Vapor Corp. announced its recent organizational restructuring to further maintain the company's competitiveness and establish its branded products and retail stores in an increasingly evolving e-cigarette and vaporizer market. The company also opened three new "The Vape Store" locations in Orlando and one in Port Charlotte. Looking ahead, the company is poised to open an additional 20 to 30 branded retail "The Vape Stores" before the end of fiscal 2015.