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DANIA BEACH, Fla. — Two electronic cigarette and vapor companies are joining forces.
Dania Beach-based Vapor Corp., a U.S.-based vaporizer and electronic cigarette company, executed a binding term sheet to enter into a merger with Miami-based Vaporin Inc., a company whose primary focus is vaporizers and e-liquids.
As stated in the term sheet, NASDAQ National Market-listed Vapor will be the surviving entity of the merger, and Vaporin stockholders will collectively own 45 percent of the issued and outstanding capital stock of the combined company.
The transaction is subject to approval by Vaporin and Vapor stockholders, execution of a definitive merger agreement, and other customary closing conditions.
"We are excited to combine Vaporin's streamlined supply chain, marketing strategies and innovative product lines with Vapor Corp.'s wide distribution capabilities," said Greg Brauser, chief operating officer of Vaporin. "Leveraging the combined synergies of our two companies will allow us to more rapidly and efficiently capture market share in an expanding market. This merger presents a prime consolidation opportunity for us to continue down the path of aggressive expansion aligned with market demand."
According to Vapor Corp., the company believes the potential financing, if consummated, will allow it to continue executing its strategy to attempt to capture an increased share of the rapidly expanding vaporizer market.