My meeting at Vapor Group, Inc. 5/07/2014


VPOR Meeting Today: What I learned…

As you know today I went and met with Yaniv and Dror from Vapor Group (VPOR) and had some questions for them regarding the recent funds they secured by Hanover Holdings ($1.3M) and what they intended to do with it. I was interested to find out a few things that I didn’t know as well as verification for things that I and many of you expected.

If you saw that piece of garbage report highlighting VPOR on and read at a 4th grade level than you like me saw so many holes in the story. Hold on let me rephrase, you saw through the misleading Bullsh*t as I did.

To be clear the FDA does not have an investigation into Vapor Group specifically, they are looking at ecig liquids all together. Funny how that dunce reporter didn’t say they were looking into BLUE. She made it seem like they were just looking at VPOR (FYI they’re not). In fact Dror tells me and I quote “If the FDA cracked down on some of these labs that are making liquids/juices for some of these companies like Blue, I would be the loan survivor in the aftermath. We have such a strict lab that meets all specifications as well as takes even further steps to make sure we have the best product just to stay ahead of the new restrictions etc.”

When I asked what the money for Hanover is going to he said “We need much more product to keep up with the growing demand. We also have to outfit American Smoke for everything they will need when they start to implement the free trial of our products.” Currently they have many products on back order which is a good problem to have. This is where Hanover came in. A misconception in general as well as from the street was that the money was going towards the marketing of products. There are no billboards or tv commercials or sky writing saying Vapor Group! All of the $ is going to wards filling orders they already have and keeping more product on reserve.

Look at it like this: Say I’m a carpenter and had zero dollars but needed a hammer. I go to you and say “hey I need $100 so I can buy a Hammer, some nails and some ply wood.” You then ask me “how will I know you CAN pay me back? I say “I have a pre existing carpentry job to do and its paying me $1000 and its already set up and they are contractually obligated to pay me half when I show up to work. etc etc”

You get the point, Hanover isn’t just pissing away money because they can. They like us are in it for a return on investment. If i’m hanover holdings I am looking at orders already pending before I cut a check that size. They are in it to see VPOR succeed, because if VPOR wins they win; Simple as that.

Above I had mentioned that American Smoke was going to do free trials with Vapor Group product. How this will work is that someone will get a vape pen from Vapor Group and get some liquids. Remember these trials are geared towards getting people off cigarettes (which is more effective than the patch or nicotene gum). Currently the they wholesale the liquids for I believe $1.25, but they will get away from wholesaling it this way and sell the liquids via the recurring status at full pop $7+. That to me is a game changer and why American Smoke partnership will reap huge returns.

I asked about the 10q and didn’t get much of a response for obvious reasons, but I did learn that they are actively looking for an Investor Relations person. I asked why they haven’t had one before and the answer was pretty simple…. They didn’t want an IR person have to explain Avworks Aviation (SPLI). Dror wanted to Show VPOR stand alone financials which makes sense because once you have to explain all that convoluted information to an investor you’re dead in the water.

IR coming on will be a huge boost and with financials that are growing quarter over quarter the sky is the limit.

I also asked Dror about Alan B as it was one of the questions. There is no bad blood and Dror is in fact going to do an interview with Him. Alan is away currently or was away when they were supposed to do it. It’s happening.

Reverse Split was a question I had asked as per the forum, he said 30/1 won’t happen. He would look to do a 3/1 or 2/1 depending on future price. He also said it would only be to get the share price above an area where they could uplist. This was all hypothetical based on my question.

Unrelated, but related I asked Yaniv if I could sell his products on this website and he thought it was a great idea. That way when new products come out that are in demand you guys will have 1st shot at them. I might even design a #Wolfpack Vaporizer who knows.

I hope this info was informative, I myself will likely increase my position near term. As always invest wisely and do your DD. I hope this info enlightens you as to the potential future of VPOR. All the best-

The Wolf

Wolf Analyst Group LLC

VPOR Strategic Positioning for growth


Author: Hamzah Khan
This research/growth based report on the e-cigarette industry detailing $VPOR’s strategic positioning has been produced by @HamzahKingKhan. I am an undergraduate studying commerce, inexperienced and lack the expertise you possess. All criticism is appreciated.
E-Cigarette/Vaping | Industry Introduction
We have all come to terms with vaping as a real phenomenon which has proven to be less harmful than traditional smoking, but have we truly understood the exponential growth this industry will witness in the coming years? A culture which was considered a fad not too long ago has Big Tobacco pacing back and forth trying to either wash the fire out or adapt to the development of this relatively new emerging industry. It’s the latter which is the case, ofcourse. As the markets for vapor-based products catch fire, certain industry leaders have received major investments from well-known players in the market. This report will detail the extensive facts, figures and analyst expectations including a certain ticker which is poised to benefit the most from the sector due its strategic positioning.
Exponential Growth | Numbers
Research studies carried out by Wells Fargo among other credible institutions verified the following numbers below, highlighting the year-by-year sales of e-cigarettes:
2008 – $20 million
2009 – $39 million
2010 – $82 million
2011 – $195 million
2012 – $500 million
2013 – $1 billion
2014 – $2 billion+ (estimation)
A simple Google search will give you these numbers (or close to it), but a lot of us who are familiar with the term ‘exponential’ growth realize the true potential of this industry – nothing short of a rapid growing powerhouse which has reached the pockets of millions globally.
Bloomberg Industries Analysts have tagged the e-cigarette industry as a phenomenon which will surpass the traditional tobacco industry in sales by 2047. Bloomberg went to the extent of listing the product as one of the most disruptive technologies set to run over its counterpart. Euromonitor believes 4% of the entire conventional cigarette industry will have switched over to vaping by 2050. Experts at Goldman Sachs have stated a tenth of the entire tobacco market will be robbed by this emerging sector.
What does this tell you about the standing of Vapor Group, for example, in the grand scheme of things? To be positioned in an emerging market the way Vapor currently is, how much advantage can we expect the company to take from the explosive growth of this industry?
Big Tobacco | Stern Competition
When I made my first investment in $VPOR, I was warned by knowledgeable individuals of the difficulties and hurdles companies like the Vapor Group will face from ‘Big Tobacco’ corporations. The stiff competition was inititally of two categories, but one of the categories has packed up and gone home, and only one stands – let me explain:
When e-cigarette products were introduced to global markets, Marlboro-maker Philip Morris slammed the industry and spent millions of dollars lobbying against it to prevent even the smallest of cuts to its market share. However, after failing to receive any end results from the wild expenditure, the company had to switch lanes and was the last international tobacco company to anounce its entrance to the e-cigarettre industry in in Q4 2013.
The biggest competition publicly traded vapor companies now face is from the big boys. All of them, after failing to keep the evolution from exploding, are rolling out products of their own to get a piece of the pie. Lorillard was the very first company to realize the strength of the vaping industry when it acquired the blu eCig brand for a whopping $125 million in 2012. Reynolds American announced its very own e-cig line, Vuse, which is expected to rollout nationally throughout 2014. British American Tobacco plans to release its second e-cigarette in 2015. Do you see where I am getting at? Big Tobacco is going all in here.
What seems like a pressure cooker which has already exploded – based on the expansion of the market in June due to national rollouts and brewing catalysts, this industry is expected to explode furthermore with Big Tobacco leading the way. However, the specific industry-related expertise and depth of knowledge mid-sized companies possess in comparison, along with massive expected growth in the coming years, gives them the edge they need to create and maintain a prominent market share nationally and internationally along with dozens of opportunities to expand in the near future.
Vapor Group | Industry Leader
The Vapor Group Inc. (VPOR:OTCQB), formerly known as AvWorks Aviation Corp. (SPLI), which completed a merger back in January with the latter mentioned shell company undoubtedly received the most attention within the sector. Investors of the company witnessed a stunning return of over 8,000% in just a matter of two months before a series of well-cordinated short attacks which drastically dropped the PPS, causing weak hands to lose investor confidence, weakening the share price of the stock furthermore. VPOR currently trades at .105 and recently received FINRA approval of its ticker change after an “FBI/NSA like investigation over the period of 90 days”, best described by @MuRk_MoNsT3R of the wolfpack.
Financials | Money Matters
The Vapor Group managed to generate gross revenues of $1,991,023, and a gross profit of $1,124,273, in just its first 8 months of operations during 2013. Everyone knows about these numbers, but most of you have no idea of the expected revenues for Vapor Group by next year. In an interview with The Young Reporter Magazine, a feature of the Hong Kong Baptist University, Mr. Yaniv Nahon, COO and VP of Vapor Group, stated revenues will soar to $35 million for the company. Based on the estimated number, current price levels look like a bank waiting to be robbed and will become nothing short of a historical joke in due time.
International Sales | Growth
Sales of Vapor Group’s vaporizers are not restricted to the US. Just based off the website, the company currently has a net presence in Europe and South America as well. With net and physical expansion possibilities to the likes of Asia, Middle East and beyond – the future of this company is very bright. What happens when expansion outpaces market maker politics? What goes through the minds of shorts when investors realize the true potential of this company? Where do you think the fair value of $VPOR will stand mid-long term?
Strategic Positioning | True To Its Term
Vapor Group has a mass production setup in China’s Shenzhen, where all the quality based vapor products are manufactured, packaged and shipped. “So what? That’s news to you? We all know that!” This is the answer I received when I emphasized on the company’s physical presence in China. Let’s connect the dots here. A sizeable cut in labor/operating expenses is just a step in the water. There is something much bigger than just that. With $91.7 billion in annual revenue and a total of 350 millon smokers, China has a lot to offer.
Authorities of the country have banned international companies from doing business in the e-cigarette sector of the industry. Vapor Group has made several attempts to crack open sales operations in China but has failed. As traditional tobacco consumers turn towards alternatives to decrease health risks, it’s only a matter of time until China pounces on the opportunity and realizes vaping as a transitional phase for the industry more than anything else. When the country decides to regulate the e-cigarette market, massive opportunities will open up and Vapor Group will be ahead of the rest. It’s only a matter of when, not if.
Brewing Catalysts | What’s Expected?
Q1 Financials: The company is set to release earnings on or before the 15th of this month for Q1 2014. Expect massive numbers based on the rapid growth of the industry, quality of products and previous numbers. Those who are awaiting disappointment are in for a hell of a surprise.
Potential* Expansion: Based on the performance of the first eight months of operations, I expect Vapor Group to announce expansion, private placement deals, and more growth.
On May 6th, Vapor Group Inc. announced a private placement deal to finance expansion worth $1.235 million dollars. Surprise, surprise!
Washington Rollout: June. Mark your calenders. Self-explanatory.
Entrance into Untapped International Markets: Vapor Group Inc. currently sells its products through its online website in the US, Europe and South America. I expect Asia and Middle East in specific to be a target for Dror and Yaniv. Wait and watch, it will happen.
Vapor Group Inc. | A Cross-Road Between Multi-Billion Dollar Markets
Vapor Group benefits from two of the fastest growing markets in recent times. The company will rake in profits through two deadly revenue generating industries, the vapor/e-cigarette industry and the marijuana industry. Unique products like The Vapor Box and American Smoke’s Marlboro-like e-cigarettes gives the company a competitive edge above the rest, and are true game changers. Instead of having just the generic household brand of e-cigarettes, a diversified lineup has allowed the company to excel at even further pace, and will be the leading catalyst for the company to hit major revenue targets in 2014 and the years to come.*
*Based on current figures, expected revenues, and a major acquisition under Vapor’s belt, a lot of investors and critics will be stunned by the amount of revenue the company will produce this year and the years to come. SeekingAlpha’s article against $VPOR will be remembered as one of the biggest jokes that did nothing but expose the credibility of the publisher and the publishing establishment.

Vapor Group, Inc. The Vapor Box *THB



I had the pleasure of attending the #NATOshow in Las Vegas today. I was honored to meet Dror Svorai, Pesident & CEO plus Yaniv Nahon, Vice President & COO Of Vapor Group, Inc.


As a shareholder I felt it was important to meet the Senior Executives face to face. My meeting with Dror & Yaniv solidified my previous conclusions that they care about the success of Vapor Group, Inc. They care about shareholders. They are forward thinkers & have a business model that will capture significant market share in the rapidly growing emerging market segment known as #ecigs & #vaping .


One of my objectives was to disect one of  Vapor Group’s newest products hitting the market The Vapor Box *THB




I wanted to know first hand if it was a quality product & what made it superior to other vape devices with a similar price point.


First let me say that Vapor Group, Inc’s timing with *THB is perfect. The market for vapor is explosive. People are increasingly aware that any form of combustion causes adverse health effects. One of those who agrees is Dr. Sanjay Gupta. In his recent follow up hour long special on CNN Weeds 2 he explained that Vapor consumption was the most efficient & uniform absorption of Cannabis Medicine. Vapor also does not change the THC or CBD compounds thus maintains the “entourage effect”


When it comes to Vapor the two things you want to avoid are “Combustion” & “Heavy Metals”

*THB has neither




I interviewed an engineer that worked on the development of *THB . She explained some differences between The Vapor Box vs. The Pax by Ploom. Also the precise stable temperature controls on the * THB that help contribute to consistent its function.



I looked for MCIG and Ploom at the #NATOshow but they were not in attendance.


*THB is a quality Vapor device that produces pure vapor. It’s compact design & ease of use make it very appealing . *THB price point of $199.00 is less then the Pax by $50.00


I am confident in Vapor Group’s infrastructure & distribution.  *THB is only one of $SPLI’S many quality products. While others are scrambling playing catch up to copy it Vapor Group will be leading the pack with new products that are already in the final stages of R&D & production.


While other companies are touting record one day sales records ( they don’t have the infrastructure established yet to increase production)

& putting out Fluff PR’s about their products being “CE” certified…. Vapor Group is putting out SEC docs showing substantial revenues plus profits & all their products are “CE” certified.  Also Vapor Group’s Liquids have surpassed FDA guidelines for safety.


#Wolfpack it is a honor & privilege to serve you.  This recon is just a fraction of what I have recorded. Stay tuned for more ;) think “Blue Tooth”