To Our Valued Shareholders,
VAPE is a company that has just recently emerged out of the developmental stage at the very end of the quarter ended March 31, 2014. As set forth in the recent 10Q, the Company’s revenues of just over $30,000 for the quarter only covered the period of the close of the HIVE acquisition (3/27) to the close of the quarter (3/31). That is just 5 days of sales.
As set forth in the Company’s most recent press release on April 24, 2014, the Company generated in excess of $100,000 in sales in the first few weeks of April alone. This is not included in the recent 10Q as it occurred after the quarter ended. In addition, the Company has sales lined up for at least an additional $250,000 in sales as of April 24. The Company is just starting its core revenue-generating operations. The Company has expanded to 14 designs, is solidifying its supply chain and has 50,000 new pieces in the pipeline to generate revenues throughout this quarter. VAPE’s business plan has always been to develop this healthy and sustainable vaporization line which has been well received by the industry in its short time in existence. The expansion of this line in terms of a distribution network and different designs is part of the future growth of VAPE. In addition, VAPE is using its industry connections to seek acquisitions and strategic alliances which will grow the Company’s value through other unique channels.
VAPE is committed to keeping its shareholders informed when tangible events can be disclosed; it is not in the business of speculative press releases. As set forth in the April 24 press release, we will disclose sales figures to the market when appropriate but the quarterly reports coming up will present the most accurate picture of the development of this Company.
The industry as a whole has seen SEC halts for 8 companies in the past few months which has resulted in rampant uncertainty within the sector. Our capital structure has also taken a hit with the dilution caused by warrant exercises in recent months. All of this has had an impact on shareholder value. The best way to increase shareholder value is to generate tangible revenues and apply VAPE’s business plan moving forward. That is what the Company plans to do.
Kyle Tracey, CEO
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