A US company that makes big box braiding equipment plans to roll out a $200 million, five-year plan to expand its business in the industry.
VapeBox Corp., a subsidiary of VapeTech Inc., said in a filing with the Securities and Exchange Commission on Wednesday it will offer the equipment to retail customers at a price of $200 a box and $600 for a bundle.
The company said it will begin offering the equipment in the first quarter of 2019.
The plan is to eventually add a third, fourth and fifth unit, and expand into specialty products, the company said.
VaporBox said it expects to add another 100 units to the business by the end of 2020.
VaperBox is not a company, it said, but rather an aggregator of vape manufacturers and distributors that is not affiliated with any particular company.
Vapetech said it has an extensive portfolio of products and that it would offer its products at a discount.
The companies plan is similar to a $100 million fund to invest in new manufacturing plants, according to the filing.
The two companies will be joined by a handful of other vaping companies and others that have raised capital in the past year, including e-cigarette maker Lifestyles Group Inc., e-juice maker PureVapor Inc. and the vaporizer maker Vaporsphere Inc. Vapetec has raised $20 million from private investors in the last year, and its equity value is about $20 billion.
The investments will help grow the companies revenue, according the filing, and it said it would spend at least $100,000 a year on research and development.
Vaping has grown rapidly in recent years, thanks in part to new devices that are more convenient, less expensive and less prone to fire, the companies said.
It is also cheaper than traditional tobacco products and safer than smoking, the filing said.