marijuana stocks

 

Form 8-K for VAPOR GROUP, INC.


20-Mar-2015

Amendments to Articles of Inc. or Bylaws; Change in Fiscal Year, Financial Stat

ITEM 5.03 – AMENDMENTS TO ARTICLES OF INCORPORATIONOn March 6, 2015, the Board of Directors of Vapor Group Inc., a Florida corporation (the “Company” or the “Registrant”), with the approval of a majority of votes of its shareholders, approved an amendment changing Article IV, “Capital Stock”, of the Company’s Articles of Incorporation (the “Amendment”), wherein the total number of authorized shares of common stock of the Registrant shall be increased from three billion, five hundred million (3,500,000,000) shares to four billion, five hundred million (4,500,000,000) shares. An increase of one billion (1,000,000,000) shares of common stock.The Amendment was submitted to the Florida Secretary of State and was declared effective on March 10, 2015, the date of filing of the file-stamped copy by the State of Florida.

As reported on our Form 8-K filed December 4, 2014, and as reported in the Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements of the Registrant filed on Form 10-Q for the quarter ended September 30, 2014 and filed with the SEC on November 14, 2014 (collectively referred to as the “Filings”), the Registrant has accumulated “convertible notes payable” in aggregate amount of $3,583,423 (the “Aggregate Convertible Notes Payable”) as of September 30, 2014. Since the Filings, several holders of said convertible promissory notes (the “Notes” or individually, a “Note”) have exercised their right to convert all or a portion of their Note(s), in accordance with Federal and State law and regulation, into free-trading shares of common stock of the Registrant pursuant to the exemption from registration under Rule 144 of the Securities Act of 1933, as amended and per the terms of each holder’s respective Note.

Consequently, as a result of such ongoing debt conversions and the Registrant payment in full of outstanding balance of two of the Notes, the aggregate amount of convertible notes payable has been significantly reduced as of the date of this filing from its total on September 30, 2014.

Also, as reported on Form 8-K filed with the SEC on February 4, 2015 by the Registrant, included in the documentation related to each Note is often the requirement that the Registrant authorize its transfer agent to reserve a quantity of shares of common stock in advance of any conversion of debt to shares of common stock in the event that the Note holder decides to convert all or any part of the outstanding balance of their respective Note (each a “Reserve”). Such Reserves are frequently variable in that downward changes in the market price of the Registrant’s common stock may trigger an increase in the quantity of shares required to be reserved by the Note holder. Moreover, such Notes allow the Note holder to convert all or a portion of the outstanding balance of each Note, in accordance with Federal and State law and regulation, without the approval of the Registrant, meaning that such conversions of debt into free trading shares of common stock of the Registrant are outside of the Registrant’s control.

As a result of the continuing low market price of the Registrant’s common stock, several Note holders have again required increases in their Reserves equivalent to many times the total possible number of shares that could be issued from their conversions greatly inflating the total number of shares set aside as Reserves. Such increases have again resulted in a significant reduction in the number of authorized shares of common stock in the Registrant’s treasury which need to be available for general business purposes. Therefore to maintain an adequate quantity of common stock in its treasury for future uses, the Registrant has been required to again increase the number of shares of its authorized common stock.

Regardless of this increase in the authorized, the Registrant plans in the coming weeks to pay in full before maturity one or more additional convertible promissory notes that collectively account for a large quantity of shares held in Reserve. Such action by the Registrant will result in a meaningful reduction in the total Reserves, as well as the prevention of further dilution of the common stock by the Note holders being paid in full by the Registrant.

 

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS(a) Exhibits:Ex. No. Date Document
5.03 March 10, 2015 Amendment to Articles of Incorporation


MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
1 comment
  1. The note holding vampires drive the PPS lower by converting, which allows them to gain more shares. $VPOR in death spiral?

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

$CANN Requests Support From Its Shareholders

Advanced Cannabis Solutions, Inc. Requests Support From Its Shareholders to Vote at…

$EAPH Finalize License Agreement

Easton Pharmaceuticals and BMV Medica Finalize License Agreement With CommonSense Ltd. of…

Two Rivers Water & Farming Company (TURV) Announces Additional Capital Infusion

Two Rivers Announces Additional Capital Infusion Two Rivers Water & Farming Company…

Cronos Group Inc. (CRON) Announces Strategic Investment in PharmaCann

Cronos Group Announces Strategic Investment in PharmaCann, a Leading U.S. Cannabis Company…