$VHUB Letter to Shareholders Discusses Company’s Future

SIMI VALLEY, Calif., March 5, 2015 /PRNewswire/ — Vapor Hub International Inc. (VHUB) today announced that its CEO, Kyle Winther, has written a Letter to Shareholders explaining the Company’s history, business model and discussing some recent investor inquiries about the Company.

Dear Shareholders:

I think sometimes about those who invested in tobacco company stock when those giant companies first went public.  Fortunes were realized in those investments.  According to some analysts, our new industry, electronic cigarettes, will outsize the current tobacco industry in a half-dozen years.  We are pleased to be on the cutting edge of this new industry and proud that, less than one year after emerging as a public company, we were able to post a profitable quarter with $1.3 million in revenue.

Our industry was born in China in 2001 when an inventor there, frustrated by the use of high-dose nicotine to rid himself of his smoking habit, developed the first electronic cigarette to deliver to himself the satisfaction of smoking without the nicotine or other troubling elements in tobacco smoke.  By 2007, his invention was purchased by the Hong Kong company Dragonite.

The first electronic cigarettes looked like traditional cigarettes and provided a similar feel to tobacco smoking while not containing any tobacco.  An e-liquid, which is heated, provided the vapor which is inhaled instead of the smoke, ash, tar and carbon monoxide associated with traditional cigarettes.

We’ve come a long way since those days.  Today we design and manufacture mechanical mods, devices that are  precision manufactured from metallic materials and do not look like traditional cigarettes.  We offer a unique user experience as a result of greater vapor production, enriched taste, and an ability to highly customize a device with different mechanical components and fashionable accessories, including different colors and finishes. Sales of e-cigarettes totaled nearly $1.7 billion in the U.S. in 2013, according to Forbes magazine and some analysts predict e-cigarette sales will pass traditional cigarettes sales with growth being fueled by smokers switching from regular cigarettes to a product that is potentially less harmful to consume.

Let’s consider the health issue for a moment.  The American Medical Association, in a 20-page policy paper, cited research that e-cigarettes are less dangerous than smoking tobacco and suggest they can be used as a smoking cessation aid.  “E-cigarettes either do not contain or have lower levels of several tobacco-derived harmful and potentially harmful constituents compared with cigarettes and smokeless tobacco,” the AMA said.  E-cigarettes also “present an opportunity for harm reduction if smokers use them as substitutes for cigarettes.”

Forbes magazine, the major business publication, in praising the invention of e-cigarettes, recently said:  “E-cigarettes have been immensely helpful to people who want to quit smoking but have found that impossible to do permanently.  These vaporizers are more effective than patches, gum or any other things smokers who want to quit have employed.  These battery-powered vaporizers…give users the feeling that they’re smoking.  But the beauty of them is that there’s no smoke involved.  No smoke is going into anyone’s lungs.”

We believe you as investors should know that your Company is on the cutting edge of this new industry.  We design, source, market and sell what is proving to be the next generation of smokeless electronic cigarettes, popularly known as “vaping” devices.  Our products are sold nationally and internationally to both wholesale and retail customers, as well as on our website:  www.vapor-hub.com. In recent news releases, which we urge you to view on our web site, we have discussed the launch of our new battery product, which we believe is superior to other brands; our Ar Cannon vape mod device, a unique and very popular product; and our new Limitless Mod, an affordable, high performing and customizable vaping device.  You will learn about additional new products in upcoming news releases.

We pride ourselves in our creativity and we  have the ability to introduce products the marketplace wants and that provide  solid profit margins for Vapor Hub.  We adhere to a very simple mission:  We strive to manufacture and sell high quality products to meet the demands of our customers and to increase shareholder value.

There have been a number of investor inquiries recently about two topics that I need to address.  The number of our shares outstanding remains at 68,060,001.  We needed to increase the authorized shares significantly to comply with the requirements contained in our debt facility, Typenex Co-Investment, LLC, to ensure that we have sufficient shares available for issuance in the event that the Typenex debt is fully or partially converted into common stock.  Notwithstanding the change in the number of shares that we have available for issuance, our intention it to repay our financial obligations owed to Typenex with cash generated from our operations to minimize shareholder dilution.

Further, some investors were troubled by our financial performance last quarter.  I was too and we have taken  steps to improve our performance which I hope to explain to you in upcoming news releases.

I believe you, as an investor, are in an exciting new growth sector and that your investment is with a Company that is an innovator in this sector.

Thank you.

Kyle Winther, CEO

Forward-Looking Statements

This Letter to Shareholders contains “forward-looking statements,” as defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this corporate profile which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of February 2015, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the statements contained in this corporate profile are reasonable, there can be no assurance that such statements will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Paul Knopick
E & E Communications
(940) 262.3584
pknopick@eandecommunications.com

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