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Vapor Corp. (VPCO, VPCOU) Preparing to Ramp up Retail Expansion following Completion of Public Offering

Vapor Corp. (NASDAQ: VPCO) (NASDAQ: VPCOU), a leading distributor and retailer of vaporizers, e-liquids, e-cigarettes and e-hookahs, provided investors with an update on the company’s future growth strategy on Thursday following the close of a $41.4 million capital raise.

“Following the completion of our recent public offering, we are extraordinarily well funded and well-positioned to execute against our business plan swiftly and judiciously,” Jeff Holman, chief executive officer of Vapor Corp., stated in a news release. “This significant infusion of capital will allow us to accelerate our retail expansion through a combination of new store launches and a roll up, in the form of purchasing existing, profitable vape store locations.”

Currently, the company’s retail network includes a collection of ‘Vape Store’ locations – including six that were acquired as part of its recent merger with Vaporin, Inc. In the first quarter of 2015, Vapor Corp. opened four additional locations, and the company has announced plans to open as many as 30 more by the end of the year.

“As the vaporizer and e-liquid market continues to mature, there is a tremendous opportunity for Vapor Corp., to capitalize on its industry knowledge and proven track record of launching and supporting a successful retail store concept,” continued Holman. “We are confident that consumers will react favorably to our expanded retail and branded presence.”

Although the market for traditional cigarettes has fallen by nearly 30 percent since 2004, according to a report by Euromonitor International, sales of e-cigarettes have recorded tremendous growth in recent years. Currently, the electronic cigarette industry is estimated to account for $1.5 billion in annual revenue, and annual growth of 24.2 percent is forecast through 2018. For Vapor Corp., this continued market performance could provide a platform for considerable growth in the months to come.

For much of the e-cigarette industry, looming Food and Drug Administration (FDA) regulations are a considerable threat to the performance of what has, to this point, been a largely unregulated space. However, Vapor Corp. views the possibility of new regulations as an opportunity to increase its market share in one of the country’s fastest growing sectors.

“[T]hese regulations will likely make it more difficult for smaller, local vape shops to remain in business,” Holman stated. “Vapor Corp. is cognizant of the opportunity that this presents for the company to make reasonably priced acquisitions during its consolidation efforts.”

In recent months, Vapor Corp. has made significant progress in transitioning from a primarily wholesale distribution strategy to a more direct go-to-market business plan. For prospective shareholders, the company’s rapid development toward its goal of becoming the first national retailer in the thriving electronic cigarette market makes it an intriguing investment opportunity moving forward. Look for Vapor Corp. to leverage its established market position and scalable retail strategy in order to promote sustained growth for the foreseeable future.

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