VAPE HLDGS INC COM USD0.00001 (OTCMKTS:VAPE) Is A Top Cannabis Pick

We've covered a lot of pot stocks over the past few weeks, as the run up to the legalization vote has attracted considerable speculative capital to the space. Companies of all shapes and sizes are up on even tenuous links to marijuana, and while there's plenty of money to be made, we're under no illusion that a large number of these companies are going to collapse once the hype dies down.That's why we've been looking out for companies that are making an effort to be as transparent as possible, and that are making genuine strides towards establishing a lasting brand in the space.One of the best examples right now is VAPE HLDGS INC COM USD0.00001 (OTCMKTS:VAPE).Back among the 2014 hype, the company commanded a $400 million market capitalization (post reverse split) based on very little fundamental value and a questionable capital structure. Fast forward a couple of years, and the valuation has collapsed to a fraction of the highs (circa $6 million at last count) but the underlying fundamentals, both operationally and from a capital structure perspective, have improved dramatically.Better yet, it's all happened just in time for what is probably going to be the biggest binary event we've ever seen in the recreational and pharmaceutical industries, and perhaps beyond.Most reading will be aware of what’s about to happen in the US on November 8, so we're not going to go into any real detail for the purposes of this discussion. All we'll say, by way of an introduction to the situation for those new to it, is that key states (read: Nevada, California) are going to vote yes or no on recreational cannabis space.If these states vote yes, we're going to see a wave of capital inflow, and the brands that dominate the space in 25, 50 or even 100 years from now will start to lay roots.Now, it's a brave call suggesting Vape could be a leading brand in 100 years, and we're not going to even attempt to support that thesis. What we will say is this, however. Many companies (especially when it comes to the retail side of the industry) are murky at best. Financials, capital structure, operations, growth strategy and more are very difficult to get a hold of.With Vape, this isn’t the case.As a short history, the company's management throughout 2014, 15 and early 16 tried to establish its brands, and position it as a leading distributor of other brands to a large retail network. The funding for this came from debt issue, and when they fell short, the company was left with a horrible amount of convertible debt on its books, and hadn’t made anywhere near the progress it would have liked in so much as executing on the above strategy.Earlier this year, however, things started to change.The company replaced its CEO, and the new hire immediately outlined a plan to get things back on track. Strategy would remain the same, but priority would be cleaning up the books and getting the company to a point where the strategy – when executed on – would add shareholder value, and not just draw dollars destined to disappear into a black hole of dilution. The new CEO, Benjamin Beaulieu, who was previously the COO, and to give credit where it's due the previous CEO, by way of his efforts leading up to Bealieu's appointment, has executed on this capital reshuffle. More than 90% of the historical convertible debt has restructured and consolidated into our new funding partner, and the company has a $5 million equity facility (equity sold as and when required, at market rate) in place to offset any potential near term dilution.Sales are starting to come in, with the first product of the company's flagship Onyx line of ceramic vaporizer having just launched subsequent to a successful mini-launch over the summer, and if/when California and Nevada vote for recreational acceptance, the company is positioned to grow its top line exponentially through its network.The company is also adding to its independent director count, which we can only think is the first of a number of steps designed to underpin an uplisting to a major exchange.There's still risk, of course, and even with the $5 million financing in place we expect some level of dilution down the road. However, this is a completely different investment proposal than it was just six months ago, and with next week's binary event approaching, there's plenty of potential upside on offer if Vape can stay its current course.We will be updating our subscribers as soon as we know more. For the latest updates on VAPE, sign up below!Disclosure: We have no position in VAPE and have not been compensated for this article.