Vapor cancels its planned exchange offer for July 2015 preferred units

Certain investors opted out of exchange, so company withdraws offer

By Devika Patel

Knoxville, Tenn., Jan. 8 – Vapor Corp. said it has withdrawn and terminated its exchange offer for preferred units that was announced on Dec. 11. The units were sold in a $41.38 million public sale on July 30 through bookrunner Dawson James Securities, Inc.

The company said that investors who owned more than 10% of the units elected not to participate in the offer and that the minimum tender condition for the offer would therefore not be satisfied.

The company had offered to issue 128 common shares and warrants for 64 shares for each preferred unit. The new five-year warrants would have been exercisable at a price equal to 120% of the closing price of the company’s stock on the expiration date of the exchange offer.

The 3,761,657 preferred units each originally consisted of one-quarter of a series A convertible preferred share and 20 warrants and had been sold at $11.00 per unit.

Based in Fort Lauderdale, Fla., Vapor makes and sells electronic cigarettes.

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