Since Nov 4, aside from one positive “surge” of 1.52%, VAPE HOLDINGS INC (OTCMKTS:VAPE) has undergone all negative sessions. In just those five trading days, VAPE has managed to wipe out 22% of its market price. Yesterday it obliterated another 8.62% on a volume of 181.9 thousand shares, and closed down at $1.06.
The stock went from hovering around $20 and $30 at the beginning of the year, to struggling to stay above $1.

All the current negative closes could very well be due to the utter lack of updates on the company. The most recent news VAPE has released comes in the form of a PR issued on September 16. That’s 56 days ago. With the press release the company disclosed that it will expand its HIVE product line by launching HIVE GLASS products. They will supposedly be released “on or before December 1, 2014”.

The company’s latest filing is even more outdated. It was turned in on August 19, and was their latest quarterly report. The 10-Q was for the three months ended June 30, and showed the following:

  • cash – $73 thousand
  • current assets – $527 thousand
  • current liabilities $740 thousand
  • revenue – $362 thousand
  • net loss – $1.3 million

Aside from this quarter’s impressive revenues, as VAPE announced this was their “first revenue-generating fiscal quarter”, the 10-Q was rather dismal. The working capital deficit and substantial net loss are rather obvious. What’s even more obvious, is all the share-printing VAPE has been busy with during those three months. The company issued 296 thousand shares at $0.678 each. The 10-Q also showed there were notes, which convert at a 40% discount from the lowest market closing price within the previous twenty market days, and shares with a set price of $1.31.

While browsing the web for news on VAPE we came across an article on the company from Oct 19. It is also highly outdated, but is worth mentioning since it states that VAPE and several other companies – Growlife Inc (OTCMKTS:PHOT), Growblox Sciences Inc (OTCMKTS:GBLX) and DigiPath (OTCMKTS:DIGP), will be “under scrutiny” by the SEC.

Investors would do well to thoroughly familiarize themselves with the company and do their due diligence before committing to its stock.

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