Market Overview

Vapor Corp. Acquires Two Retail Vape Stores in Gainesville, Florida

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Vapor Corp. (NASDAQ CM: VPCO, VPCOU) ("the Company"), a leading U.S.-based distributor and retailer of vaporizers, e-liquids, e-cigarettes and e-hookahs, announced today the successful completion of its first post capital raise acquisition of two established retail vape stores, located in Gainesville, Florida. Terms of the transaction were not disclosed.

"Following the recent closing of Vapor Corp.'s $41.4 million equity raise, we promised an intelligent and aggressive plan to establish a national footprint for our retail store brand. In just four weeks, we're off to a strong start, having opened two new stores and completing the first two of what we expect will eventually be a large number of calculated, strategic acquisitions," said Greg Brauser, Vapor Corp.'s President. "These consumer retail operations, which will transition to the Vapor Corp. banner, have done a great job of building a strong reputation and gaining traction within the local vaping community. With Vapor Corp.'s corporate strengths and capabilities, we intend to further build out this geographic region to accommodate local demand."

In response to the growing consumer demand for vaping merchandise across the U.S. and in recognition of the shift in consumer preference to purchase these products in vape-dedicated stores, Vapor Corp. is significantly expanding its retail footprint. These acquisitions represent the Company's 13th and 14th "The Vape Store" locations, with a goal of increasing the number of Company-owned retail stores by 20 to 30 locations before the end of the calendar year.

In 2015, an estimated one-third of the $3.5 billion retail purchases in the U.S. will be made through the vape shop retail channel, while just a short time ago, all brick and mortar sales were made through c-store, food, drug and mass retail channels.

Jeff Holman, Vapor Corp.'s CEO, added, "These acquisitions give Vapor Corp. a strong foothold in an important local market and provide a solid foundation from which to open and acquire additional stores in surrounding areas. By deploying capital into existing, profitable locations, we simultaneously achieve an immediate ROI and strategically 'prime' the market to support additional locations that can synergistically feed off of the success of these inaugural stores."

Posted-In: M&A News Press Releases

 

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