Vapor Corp. (NasdaqCM:VPCO) announced a private placement of one convertible promissory note with returning investor Vaporin, Inc. at $350,000 per note for gross proceeds of $350,000 on January 29, 2015. The note will have a fixed interest rate of 12% per annum. The note will mature on January 29, 2016. If the merger between the company and investor does not close by May 31, 2015, the maturity date will accelerate and the outstanding principal and accrued but unpaid interest under the note will become due on June 1, 2015. If the merger closes prior to the end date, then the note will be extinguished as a result of the merger. However, if the merger does not close by the end date the note will become convertible into the company's common stock at a variable conversion price equal to 85% of the closing price of company's common stock on the Nasdaq Stock Market on May 29, 2015, provided, however, that the note will not be convertible until such time as the Nasdaq Stock Market approves the listing of the shares to be issued upon conversion of the note. The investor will not hold more than 19.99% stake in the company on conversion of note.

On January 29, 2015, Vapor Corp. closed the transaction.