Today, we are presenting Newgen Concepts Inc. (OTCMKTS:VPOR), also called Vapor Group, Inc., which has recently spiked higher.What's going on?The company recently released that it is entering the cryptocurrency industry by acquiring CryptoTechCurrency, Inc., a coin miner.But, that's not all.Directors are also saying that reduction in the company's debt and asset sale are on the way. It was a great news, as these events should help the company increase the business growth.As a result of this good news, the market pushed up the stock price.Have a look at it: 1 year chart for VPORBusinessVPOR is headquartered in Miami, Florida, and was founded in 2007. It focuses on the acquisition and development of commercially viable intellectual property and proprietary products. It owns different subsidiaries, like Simple Cork, Inc., which owns a patented wine bottle closure/opener combination, or Total Vapor, Inc., which distributes the hand-held automatic Easy Grinder.But, what interests us and the market the most is the recent cryptocurrency business acquired. The management of VPOR knows very well that the market is looking for these kind of assets, therefore it occupies a big space on its corporate website.Have a look at the following image taken from the web: Brands owned by Newgen Concepts Inc OTCMKTS:VPORRecent DevelopmentsThe share price spike occurred in December, thus we will focus more on what happened in this month.On December 1, 2017, the company released a letter to shareholders to explain the sale of assets of Simple Cork and the share distribution to its shareholders. We believe that the transaction is a great initiative that the market should appreciate. The company is cleaning the balance sheet, reducing its debt and increasing its liquidity. It should affect positively the share price in the long run.Additionally, it will help the company focus on those business divisions that are growing at a higher pace. Have a look at the following words from the letter. We believe that they are the most interesting ones:
"Vapor Group is selling the assets of Simple Cork to focus on its core revenue-producing businesses that are Easy Grinder™ and Royal CBD. Each of which is growing." Source
On December 14, 2017, the company released that its single month, November, revenues exploded past $500,000 as the result of the rapid growth of CBD sales by Royal CBD, Inc., its newly formed subsidiary, and the continued success of Easy Grinder™. This is a great news and the market logically pushed up the share price hitting three-months highs.The following are the more meaningful words of Yaniv Nahon, President (Please note that the company expects the good trend to continue in 2018):
"Our sales numbers are strongly trending upward! November was a huge month for us and what I think was our inflection point. The winning combination for us was our focus on developing distribution sales for CBD products while continuing to build revenues for Easy Grinder™, particularly internationally. We expect that this escalation in revenues will continue in December, and indeed into 2018." Source
Additionally, he noted that in 2018, the shareholders are expected to receive shares following the asset sale and the company would be entering the cryptocurrency mining business. Well done.Finally, on December 19, 2017, the company released that it had formed a new wholly-owned subsidiary, CryptoTechCurrency, Inc., to mine several cryptocurrencies and had already purchased 25 dedicated mining machines to begin operations in the first week of January 2018. This was, in our opinion, the most interesting announcement, which made the share price increase even more.Have a look at the following stock chart: 1 month chart for VPORThe President of VPOR noted that the subsidiary will start by mining Litecoin on a 24/7 basis in January with 25 "high hashrate" ASIC L3+ AntMiner servers. Additionally, it was said that the company intends to own "a cryptomining farm with hundreds or thousands of machines that will participate in one or more mining pools." We believe that it is quite ambitious, but if the company is able to do it, the business growth will spike.Finally, we need again to point out the following words of Yaniv Nahon, President. We believe that they contributed to the share price spike:
"Figuratively 2018 will represent our reinvention of our Company, given the pending asset sale announced (for which our shareholders will receive registered shares of a SEC reporting company), the reduction of our debt connected with it, and the growth of our other businesses." Source
ConclusionCurrently trading with a market cap of $14 million, VPOR is an exciting story among small caps. The company shows a balance sheet that includes $0.4 million in inventories, $0.1 million in long term investments, $1.3 million in total assets, and $4.5 million in total liabilities. We believe that the next asset sale will help reshape the accounts and many market participants will be willing to take a look at the business of VPOR. To sum up, follow this name, as it seems that there are many catalysts that could make the share price pop.We will be updating our subscribers as soon as we know more. For the latest updates on VPOR, sign up below!For the full story, check out our complete coverage on VPOR.Disclosure: We have no position in VPOR and have not been compensated for this article.Image courtesy of Ecig Click via Flickr
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