Author: Staff Writer

Charlie’s Holdings Raises $3 Million in Private Stock Sale
Charlie’s Holdings, Inc., parent to the Charlie’s Chalk Dust and Pacha Mama brands, announced that it has closed a $3 million capital raise through the private sale of 351,669,883 shares of common stock to the company’s founders, Brandon Stump, CEO, and Ryan Stump, COO, according to a press release. The company intends to use the proceeds from the offering to drive substantial future growth, facilitate new product launches, increase working capital, retire outstanding debt, and for other general corporate purposes.
“The extensive process required to compile and submit a comprehensive premarket tobacco product application (PMTA) to the FDA will ultimately prove a huge differentiating factor for Charlie’s; but it was also very expensive. Charlie’s invested nearly $5 million for its initial PMTA submission and the company was in need of additional capital,” explained Jeff Fox, a member of Charlie’s board of directors. “After lengthy negotiations with numerous other potential investors did not produce acceptable terms, we are pleased that our founders, Brandon and Ryan Stump, chose to personally fund this $3 million common stock only investment. This financing does not include warrants or any other inducements. It will provide Charlie’s with sufficient proceeds to meet all of the Company’s current financial obligations and to drive substantial future growth opportunities.”
David Allen, CFO said the proceeds from the private placement will strengthen the company’s balance sheet, accelerate European growth, allow for expansion into the Middle East, and facilitate the company reaching several important near-term milestones, including the FDA’s anticipated announcement of Charlie’s successful PMTA.
“Such an accomplishment will allow Charlie’s to benefit tremendously as one of only a select group of companies operating responsibly in the premium e-liquid product space,” said Allen. “Combined with our international growth, a domestic PMTA approval will dramatically increase Charlie’s sales, profits, and market share. We expect 2021 will be a very exciting year for our shareholders.”
April 4, 2021
Montana Senate Bill Aims to Ban Local Vape Laws
Lawmaker’s bill to stop Montana communities from enacting local ordinances or resolutions to prohibit the sale of any vaping products or alternative nicotine products saw support last week from vape shop owners and opposition from public heath advocates and educators.
Senate Bill 398 is carried by Republican Sen. Jason Ellsworth. He told the Senate Business, Labor, and Economic Affairs Committee vaping products are legal and should not be banned, according to the Independent Record. “The one thing they cannot do is ban it in totality. It’s a legal product. It should not be banned, but of course they can put sideboards on it,” Ellsworth said.
Under the bill, a local government could enact a “reasonable” ordinance or resolution related to the sale of vaping products. While the bill does not define “reasonable,” Ellsworth said to his thinking that could mean something like keeping products out of reach of children in stores or not allowing vaping in restaurants.
Rep. Ron Marshall, a Republican from Hamilton, spoke in support of the bill. Marshall is co-owner of a vaping store. Earlier this session he brought a bill that would have barred a local government or the state Department of Public Health and Human Services from creating or continuing a regulation, ordinance or restriction related to vaping products.
Reports for the period that include when Ellsworth’s bill was introduced aren’t due yet. At the state level, the Montana Department of Public Health and Human Services proposed to ban flavored vaping products in 2020 over concern that flavors targeted children. Ellsworth was a leader in a push from GOP lawmakers to oppose the ban, which the department eventually dropped.
After passing the House in February, Marshall’s bill was voted down in the Senate Business, Labor, and Economic Affairs Committee in mid-March. Marshall told the same committee Tuesday in support of Ellsworth’s bill that bans on things like flavored vaping products would hurt businesses like his. He also said local governments shouldn’t have power to create ordinances on vaping products.
April 4, 2021
Broughton Launches Blue-Sky Thinking Hub

Photo: BNS
Broughton Nicotine Services (BNS) has launched its Blue-Sky Thinking Hub, an “open innovation community” for companies to collaborate and develop ideas within the electronic nicotine-delivery system (ENDS), pharmaceutical and cannabis markets.
BNS is a contract research organization with more than 10 years’ experience helping ENDS companies bring tobacco-free nicotine-delivery products to market.
The company has recently added services aligned with a number of new product categories, including modern oral nicotine products, cannabidiol (CBD) and cannabis-delivery devices and work with clients based in the U.S., China, U.K., Europe and the Middle East.

The Blue-Sky Thinking Hub seeks to engage companies with innovative ideas.
Nveed Chaudhary, chief regulatory officer, BNS
The Blue-Sky Thinking Hub encourages manufacturers and regulators to build strong relationships to overcome product development and regulatory challenges and work toward total harm reduction. An additional benefit is around considering solutions to potential regulatory concerns as part of the product development.
“Broughton Nicotine Services is dedicated to helping manufacturers meet regulatory requirements and delivering reduced-harm products to market,” said Nveed Chaudhary, chief regulatory officer at BNS.
“The Blue-Sky Thinking Hub seeks to engage companies with innovative ideas, which could be anything from new formulations to plastic-free or biodegradable products, technology to discourage and reduce youth access or even alternative charging for devices.
“Broughton helps these ideas to come to life by providing expert scientific and regulatory advice, contributing to the end goal of global total harm reduction.”

We invite industry professionals to discuss, debate and develop their ideas for new products aligned with regulatory requirements and to hopefully help influence and shape new policies.
Paul Moran, chief executive, BNS
“We are delighted to be launching the Blue-Sky Thinking Hub, which is the first of its kind in the industry,” said Paul Moran, chief executive at BNS.
“We invite industry professionals to discuss, debate and develop their ideas for new products aligned with regulatory requirements and to hopefully help influence and shape new policies.
“Together we can achieve total harm reduction and a smoke-free future.”
April 1, 2021
Call for Britain to Make Its Mark in Fight to End Smoking
Mark Pawsey (Photo courtesy of UKVIA)
In a report released today March 31, the U.K. All-Party Parliamentary Group (APPG) on Vaping has called upon the government to make the most of Brexit by challenging the World Health Organization’s (WHO) opposition to vaping at the upcoming Framework Convention on Tobacco Control (FCTC) Conference of Parties (COP).
The call follows a four-month Inquiry into the FCTC by the APPG which investigated the FCTC’s history, governance and approach to evidence-based decision-making. It was prompted by the WHO encouraging and applauding bans on vaping.
At a time when the U.K. government has set an ambitious target to make England smoke-free by 2030, and Public Health England has asserted vaping is at least 95 percent less harmful than smoking, the members of the House of Commons and the House of Lords wanted to ensure the WHO doesn’t turn its back on the lives of the 1 billion people around the world who still smoke, including the 7 million in the U.K.
The parliamentarians—which included Viscount Matt Ridley, a vocal advocate for reduced harm alternatives—have called on the government to consider “dramatically scaling back our funding” if they don’t see a change in the approach from the WHO with the FCTC better reflecting the U.K.’s national interests.
The main recommendations from the report include:
Ensuring the WHO returns to the founding principle of the Treaty which includes harm reduction.
Restricting any decision to ban vaping and other reduced risk alternatives to smoking.
Sending experts and consumers to sit alongside the Department of Health & Social Care officials at the multilateral event.
Establishing a Working Group to look at the science and evidence for new and emerging products.
Ensuring openness and transparency instead of secretive decision making.
If the WHO continue to pursue an agenda-driven approach to ban less harmful alternatives to smoking, then the U.K. should consider dramatically scaling back our funding.
Viscount Matt Ridley
The inquiry heard evidence from Clive Bates, former director of anti-smoking group ASH, as well Professor Lynne Dawkins from the London South Bank University and consumer groups the New Nicotine Alliance and We Vape, among others.
They called for the delegation of departmental health officials, diplomats and activists usually sent to these events to be strengthened with experts who have real world experience, and even former smokers who can attest to the benefits of vaping and other reduced risk products. It was strongly felt that the voice of the consumer has been missing in these debates so far, and by defending the strong story the U.K has to tell at home, the government would be putting the marker down for “Global Britain” abroad.
Now that the U.K. has left the EU, the U.K. delegation is no longer bound to a common European position on tobacco and nicotine policy. The COP9 meeting would be one of the first opportunities for the U.K. to take a stand at a UN forum.
We call on the government to defend the U.K. approach, challenge the WHO to stub out their ban on vaping, and help return the FCTC to its founding pillar of harm reduction.
Mark Pawsey, chair of the APPG for Vaping

The MPs called for coalitions to be built with like-minded countries that have embraced tobacco harm reduction and have their own good stories to tell. At previous COP meetings, member states have often been afraid to speak up, but the inquiry encouraged the U.K. government to stand firm in defending its strong domestic position, even if the WHO continues with its prohibitionist approach.
“There is no doubt that the WHO has developed a negative stance in relation to vaping over recent years,” said Mark Pawsey, member of parliament for rugby and chair of the APPG for Vaping. “We wanted to evaluate whether it remained fit for purpose in an evolved landscape where new technology has enabled new harm reduction strategies.
“One of the founding pillars of the treaty the U.K. signed up to nearly 20 years ago was that of harm reduction. If the WHO are opposed to adhering to this and continue to pursue an agenda-driven approach to ban less harmful alternatives to smoking, then the U.K. should consider dramatically scaling back our funding.
“At the FCTC COP9 the U.K. has a unique opportunity to champion its progressive, successful and evidence-based, domestic policies on the global stage. We are a world leader in tobacco harm reduction, and we call on the government to defend the U.K. approach, challenge the WHO to stub out their ban on vaping, and help return the FCTC to its founding pillar of harm reduction.”
The APPG has written to Jo Churchill MP, the Public Health Minister at the Department of Health & Social Care with its findings and has requested a meeting to discuss its recommendations.
This is the first of two inquiries the APPG for Vaping is undertaking this year. Its second—looking at how the U.K. can diverge from EU rules to further the U.K.’s chances of reaching the smoke-free 2030 goal—is set to launch imminently.
April 1, 2021
Alabama House Passes Bill to Raise Age to Vape to 21
A proposal to raise the legal age to buy cigarettes and certain vaping devices is being considered by the Alabama Senate after lawmakers in the Alabama House of Representatives passed the resolution by a vote of 74 to 18.
Credit: David Mark
State representatives returned to work Tuesday after taking a vacation last week. The bill to raise the legal age to buy products with nicotine from 19 to 21 was one of the first bills on the agenda in the state House. It’s sponsored by Representatives Barbara Drummond [D], Napoleon Bracy [D], Merika Coleman-Evans [D], David Faulkner [R], Ralph Howard [D] and Debbie Wood [R].
House Bill 273’s text says “Under existing law, an individual under the age of 19 may not purchase, possess, or transport tobacco products, electronic nicotine delivery systems, or alternative nicotine products.”
March 31, 2021
Spyder Cannabis Acquires Vape Retailer 180 Smoke
Spyder Cannabis Inc. has closed on its acquisition of 180 Smoke, a Canadian e-cigarette retailer. On March 30, Spyder purchased all of the shares of 180 Smoke from CRHC Holdings Corp., parent to 180 Smoke. on a cash-free basis (after post-closing adjustments), for nominal consideration. Additionally, Spyder secured a strategic institutional investor to lead the acquisition of all the existing debt of 180 Smoke, according to a press release.
“We are extremely excited to welcome 180 Smoke to the Spyder team, which undoubtedly strengthens our management and operating teams bringing strong retail processes and expertise to Spyder,” said Dan Pelchovitz, president and CEO of Spyder. “The acquisition of 180 Smoke significantly accelerates the development of Spyder’s cannabis and vape retail growth strategy, providing access to an iconic brand name, an established platform, and a loyal customer base. We are excited by the prospects ahead of us and executing on our immediate cannabis retail expansion plans in Ontario.”
Spyder will have the ability to utilize its wholly-owned subsidiary’s Retail Operator License issued by the Alcohol and Gaming Commission of Ontario (AGCO) to convert some of 180 Smoke’s existing vape retail locations to licensed cannabis dispensaries by obtaining a Retail Store Authorization from the AGCO, the release states. The acquisition is expected to immediately increase Spyder’s consolidated revenue with the addition of 180 Smoke’s nicotine vape sales, franchise revenue and other wholesale and distribution revenue which generated approximately $12.9 million in unaudited net revenue with gross margins of 50% during the year ended December 31, 2020.
180 Smoke’s 91 employees who will continue to operate 180 Smoke’s 18 brick-and-mortar vape retail locations, 8 franchises, and its corporate head office and distribution warehouse, following the closing of the acquisition.180 Smoke’s current customer base includes 92,481 in-store accounts, 98,052 online accounts, as well as 235 specialty wholesale vape B2B accounts, according to the release. Spyder expects to integrate its 2 brick-and-mortar vape retail stores with those of 180 Smoke’s to “leverage the acquired know-how and intellectual property, including retail store design and layout, standard operating procedures, administrative systems and customer support, human resources and staff training, and accounting.”
March 31, 2021
Bidi Vapor Enters Bidi Stick Into Four New Markets
Bidi Vapor successfully completed the regulatory process to enter four new, significant markets. Bidi Vapor’s primary offering, the Bidi Stick is a closed system disposable electronic nicotine-delivery system (ENDS).
Bidi Vapor recently successfully received premarket authorization from the United Kingdom’s regulatory body, the Medicines and Healthcare products Regulatory Agency, to sell and market Bidi Vapor products through Kaival Brands in the U.K.
Moreover, Bidi Vapor has successfully completed all necessary certifications and finished the process for distribution approvals to market and sell products in Russia, New Zealand and Australia.

Once Kaival Brands solidifies local distribution agreements, we will begin to sell and market our full scope of products.
Niraj Patel, CEO Kaival Brands
“We are extremely excited to roll out Bidi Vapor products in four significant, new markets for us,” said Niraj Patel, Kaival Brands’ CEO in a statement. “Once Kaival Brands solidifies local distribution agreements, we will begin to sell and market our full scope of products. We believe our first sales in each of these new regions will occur within the next six months with U.K. being the first.”
Kaival Brands will showcase its Bidi Stick at the VOXPO virtual trade show on April 28–30.
“We believe the Bidi Stick will be a welcomed entry into the U.K. market as long-time adult cigarette smokers look to transition to ENDS products,” said Patel, who is also president and CEO of Bidi Vapor.
“While the VOXPO conference is our first international show, we anticipate participating in similar events in Australia, New Zealand and Russia. We see ample opportunity in these new markets, as the success we’ve seen in the United States shows us that once consumers discover an e-cigarette that can provide them a consistent, premium experience, they will welcome the option.”
March 31, 2021
PAX Labs Launches Era Life Cannabis Vaporizer

Photo: PAX Labs
PAX Labs has launched the Era Life cannabis vaporizer. Created for the on-the-go consumer. According to the company, Era Life delivers an effortless experience without compromising on full flavor, vapor or consistency. The device brings together a high performing battery with PAX’s most compact device yet. Era Life works with any PAX Era pod, featuring curated, high-purity cannabis, produced by one of PAX’s carefully selected partners across the country. Era Life is available in the colors Onyx, Grass, Blaze and Indigo.
“We designed the Era Life to provide a simple, fun way to enjoy cannabis while still carrying the PAX promise of iconic design and enduring quality that our customers have come to know and trust,” said Colt Stander, head of product at PAX Labs, in a statement.

We designed the Era Life to provide a simple, fun way to enjoy cannabis while still carrying the PAX promise of iconic design and enduring quality.
Colt Stander, head of product, PAX Labs
“Cannabis is one of today’s fastest growing industries and we’re seeing new consumers enter the space rapidly. We’ve taken the best PAX has to offer, perfected the core functionality, and packaged it up in our most portable design yet—perfect for those who want the easiest possible experience but still care about durability, aesthetics, and safety in the products they use.”
PAX’s temperature control checks the temperature 125 times per second, ensuring a consistent temperature that delivers a full, never-burnt flavor throughout the life of the pod. Whether using lower temperature for more flavor or higher temperature for more vapor, Era Life creates smooth airflow through laser cut sidings and achieves better hits every time.
Era Life provides more than 150 puffs per charge and an easy-to-read LED low battery indicator ensures it’s never without juice. The product is UL-certified, meeting the leading safety standards
Priced at $35, Era Life is available for purchase by those 21 and over beginning on pax.com and at licensed retailers in legal U.S. states where PAX products are sold.
March 31, 2021
Kentucky Ends 15% Wholesale Tax on Vapor Hardware
The state of Kentucky’s General Assembly has voted to remove the state’s 15 percent wholesale tax on vaping hardware when sold separately from e-liquids. The e-liquid will continue to be taxed at 15 percent. That was the intent of the original tax bill, Republican Rep. Jason Petrie of Elkton, sponsor of House Bill 249, an omnibus revenue bill, said at a February committee meeting. He said legislators had been receiving lots of calls about it, and the bill more clearly defines how open “vaping” systems should be taxed.
Last March, when the Senate Appropriations and Revenue Committee passed a trimmed down version of a House bill to tax e-cigarettes for the first time in Kentucky, Sen. Chris McDaniel, R-Taylor Mill, said the hardware should only be taxed at 6%, according to the Times-Tribune. Ultimately, the 15 percent tax on open systems, including both hardware and solution, and a $1.50-per-pod tax on closed vapor cartridges were added to the revenue bill and became law.
A fiscal statement attached to this year’s bill notes that Kentucky started taxing vaping products in August 2020 and has generated about $1.5 million per month from the levies. It says about $1.4 million per month comes from taxes on closed systems, like those sold by Juul Labs, and about $185,500 per month on the open systems, which are typically sold in “vape” shops. The report says removal of the 15 percent separate-hardware tax will cost $243,750 in revenue. That’s a relatively small amount, but health advocates were not happy with the change.
“Removing the tax on open vaping system devices reduces tax revenues at a time when Kentucky remains very uncertain about the long-term economic impact of the pandemic,” Ben Chandler, president and CEO of the Foundation for a Healthy Kentucky, said in an e-mail, according to the Times-Tribune. “Moreover, these devices will become the sole tobacco product to escape a state excise tax.”
In contrast, Chandler said, “Only 19 of the state’s 61 local health departments will get funding for tobacco prevention and cessation beginning July 1. We urge the governor and lawmakers to work together to address Kentucky’s continuing tobacco and nicotine addiction problem, which appears to have grown during the pandemic.”
March 30, 2021
FDA Issues 3 More Warning Letters for Illegal E-liquids
The total is now 73 in 2021. The U.S. Food and Drug Administration (FDA) issued four more warning letters for marketing illegal vapor products. Morin Enterprises Inc. d/b/a Ecig Crib, Nicoticket LLC, Bouji Moj Oyeeb, Inc. d/b/a MasterMix E-Liquid all received letters on on March 26 and those letters were posted to the FDA’s website today, March 30.
Credit: Sandy Millar
The FDA states that a review of the ecigcrib.com website revealed that the company “manufacture and offer for sale or distribution to customers in the United States e-liquid products without a marketing authorization order “including: E Cig Crib – Planet of the Grapes E Liquid and E Cig Crib – Cotton Candy E Liquid.” Nicoticket’s letter states the website “nicoticket.com revealed that you manufacture and offer for sale or distribution to customers in the United States e-liquid products without a marketing authorization order including: Nicoticket Wakonda and Nicoticket The Virus.” Bouji’s letter states that a review of “mastermixeliquid.com revealed that you manufacture and offer for sale or distribution to customers in the United States e-liquid products without a marketing authorization order including: MasterMix E-Liquid – Mango and MasterMix E-Liquid – Maraschino Cherry.”
The FDA also states that “the violations discussed in this letter do not necessarily constitute an exhaustive list” and companies should quickly address any products that violate the same rules as the product mentioned in the letter. “Your firm is a registered manufacturer with 1,433 products listed with FDA. It is your responsibility to ensure that your tobacco products comply with each applicable provision of the FD&C Act and FDA’s implementing regulations,” the letter states.
Bouji has over 31,500 products listed with FDA. Nicoticket is a registered manufacturer with over 6,800 products listed with FDA and E-cig Crib is a registered manufacturer with over 4,700 products listed with FDA.
Companies that receive warning letters from the FDA have to submit a written response to the letter within 15 working days from the date of receipt describing the company’s corrective actions, including the dates on which it discontinued the violative sale, and/or distribution of the products. They also require the company’s plan for maintaining compliance with the FD&C Act in the future.
March 30, 2021