E-Cite Motors (VAPR) Eliminates Over 3.3 Million Potentially Dilutive Shares by Paying Down Convertible Debt and Building Long-Term Value

Rhea-AI Summary

E-Cite Motors (OTCID:VAPR) has announced the elimination of approximately 3.3 million potentially dilutive shares by paying off its December 22, 2023 convertible note. The company has also executed a Stock Lockup Agreement that eliminated 90% of potential conversions for the next twelve months.

As a Low Volume Manufacturer, E-Cite benefits from regulatory advantages that exempt it from extensive crash testing requirements faced by traditional automakers like Tesla and Ford. This allows for faster market entry and reduced costs while maintaining safety compliance.

CEO Barry Henthorn emphasized the company's commitment to protecting shareholder value through strategic debt reduction and strengthening its capital structure.

Positive

• Elimination of 3.3 million potentially dilutive shares through convertible note payoff
• 90% reduction in potential share conversions through Stock Lockup Agreement
• Regulatory advantage as Low Volume Manufacturer enables faster market entry and lower costs

Negative

• Remaining convertible debt still exists on balance sheet
• Operating as a penny stock on OTC markets indicates higher risk profile

Management Moves Aggressively to Protect Shareholders and Strengthen the Capital Structure, Delivering on Its Promise to Minimize Dilution and Increase Value While Recent Debt Reduction and Lockup Agreement Demonstrate Long-Term Confidence

BOTHELL, WASHINGTON / ACCESS Newswire / October 2, 2025 / VaporBrands International, Inc. dba E-Cite Motors (OTCID:VAPR) announced today that it has paid off its convertible note dated December 22, 2023, resulting in the elimination of approximately 3,300,000 shares from potentially being converted into common stock. This strategic action underscores management's ongoing commitment to protecting shareholders, strengthening the balance sheet, and increasing long-term shareholder value.

This milestone is part of a larger, concerted effort by E-Cite Motors to reduce and eliminate convertible debt obligations that could negatively impact the Company's share structure. The Company recently executed a Stock Lockup Agreement that effectively eliminated 90% of potential conversions that might have otherwise occurred over the next twelve months, ensuring that shareholders are protected from excessive dilution as the Company continues to execute on its business plan.

"We are delivering on our commitment to put shareholders first," said Barry Henthorn, CEO of E-Cite Motors. "By paying down debt and eliminating millions of potential conversion shares, we are strengthening our capital structure and preserving shareholder value. This, combined with our lockup agreement, sends a clear message that our management team is focused on building a strong foundation for growth without compromising our investors' trust."

Additional debt reductions are already in process as the Company advances its operational and financing strategies. These efforts are designed to minimize dilution, bolster the balance sheet, and ensure that E-Cite is positioned for both near-term execution and long-term success.

Regulatory Advantage: Why E-Cite Stands Apart from Traditional OEMs

Unlike traditional automakers such as Tesla (TSLA), Ford (F), General Motors (GM), and Toyota (TM), which are subject to lengthy and costly full-scale crash testing and certification processes, E-Cite benefits from a significant regulatory advantage under the Low Volume Manufacturers Act.

This exemption allows E-Cite to design, produce, and sell vehicles without the same barriers that traditional OEMs face, accelerating time to market, reducing costs, and enabling far greater flexibility in design and innovation. This unique positioning gives E-Cite an unprecedented competitive edge in bringing distinctive electric vehicles to market rapidly and efficiently, while still maintaining compliance with U.S. safety and emissions regulations.

This regulatory advantage, combined with the Company's strengthened capital structure, underscores why E-Cite represents a powerful opportunity for investors seeking exposure to the future of electric mobility.

About E-Cite Motors Group (OTCID:VAPR): E-Cite Motors Group is a next-generation electric vehicle manufacturer redefining the American automobile by producing premium EVs that combine timeless design with groundbreaking performance. Unlike traditional automakers, E-Cite employs a modular EV platform that allows for rapid development, high efficiency, and reduced environmental impact. E-Cite's vehicles are developed under a low-volume manufacturing model, enabling the company to bypass certain regulatory hurdles and accelerate delivery of innovative models to consumers. From modernized classic sports cars to record-breaking electric trucks. By combining cutting-edge technology with classic automotive design, E-Cite is redefining what's possible in the EV space. E-Cite is committed to "leading the EV evolution through innovation, agility, and intelligent design". The company is headquartered in Bothell, Washington, and is majority owned by Innovative EV Technologies, Inc.

Contact:

Innovative EV Technologies, Inc. dba E-Cite Motors
Email: ceo@ecitemotors.com
Website: www.ecitemotors.com

SOURCE: Innovative EV Technologies dba E-Cite Motors

View the original press release on ACCESS Newswire

FAQ

How many potentially dilutive shares did E-Cite Motors (VAPR) eliminate in October 2025?

E-Cite Motors eliminated approximately 3.3 million potentially dilutive shares by paying off its convertible note dated December 22, 2023.

What percentage of potential share conversions did VAPR's Stock Lockup Agreement eliminate?

The Stock Lockup Agreement eliminated 90% of potential conversions that could have occurred over the next twelve months.

What regulatory advantage does E-Cite Motors have over traditional automakers?

E-Cite operates under the Low Volume Manufacturers Act, exempting it from lengthy and costly full-scale crash testing requirements that traditional automakers face, enabling faster market entry and reduced costs.

Who is the CEO of E-Cite Motors (VAPR)?

Barry Henthorn is the CEO of E-Cite Motors.

How does VAPR's debt reduction strategy benefit shareholders?

The debt reduction strategy benefits shareholders by eliminating potential dilution, strengthening the company's balance sheet, and preserving long-term shareholder value.