Smoore International has raised $918 million in its initial public offering (IPO) at the Hong Kong Stock Exchange, reports Reuters. The deal is the largest IPO in Hong Kong since the start of 2020.
The Shenzhen, China-based firm offered 574 million shares, according to the company’s prospectus, and had indicated the stock would be priced between HKD9.60 ($1.24) and HKD12.40 per share.
The largest investors were Huaneng Trust, which took $80 million worth of stock, and Prime Capital which took $50 million, according to Smoore’s prospectus.
In 2019, Smoore reported a profit of CNY2.17 billion ($307.8 million), up from CNY733.9 million one year earlier.
Smoore is due to start trading on the Hong Kong Stock Exchange on Friday.
The U.S. Food and Drug Administration (FDA) on July 7 issued exposure modification orders to Philip Morris Products’ (PMP) IQOS heat-not-burn device system (holder and charger) and three Marlboro Heatstick variants.
The FDA previously authorized the marketing of IQOS without modified risk information in April 2019 via the premarket tobacco application pathway.
In its most recent ruling. the FDA determined that IQOS does not currently meet the standard for marketing with reduced-risk claims but can be marketed with a reduced-exposure claim.
Specifically, the FDA is allowing the company to claim:
The IQOS system heats tobacco but does not burn it.
This significantly reduces the production of harmful and potentially harmful chemicals.
Scientific studies have shown that switching completely from conventional cigarettes to the IQOS system significantly reduces your body’s exposure to harmful or potentially harmful chemicals.
“Through the modified risk tobacco product application process, the FDA aims to ensure that information directed at consumers about reduced risk or reduced exposure from using a tobacco product is supported by scientific evidence and understandable,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products.
“Data submitted by the company shows that marketing these particular products with the authorized information could help addicted adult smokers transition away from combusted cigarettes and reduce their exposure to harmful chemicals, but only if they completely switch.”
In its announcement, the FDA stressed that is marketing authorization doesn’t mean the reviewed products are safe or “FDA approved.”
The FDA’s marketing order requires PMP to conduct post-market surveillance and studies to determine the impact of these orders on consumer perception, behavior and health, and to enable the FDA to review the accuracy of the determinations upon which the orders were based.
These post-market requirements include a rigorous toxicity study using computer models to help predict potential adverse effects in users. The orders also require the company to monitor youth awareness and use of the products to help ensure that the marketing of the MRTPs does not have unintended consequences for youth use.
“The FDA’s decision is a historic public health milestone,” said Andre Calantzopoulos, CEO of Philip Morris International. “Many of the tens of millions of American men and women who smoke today will quit—but many won’t. Today’s decision makes it possible to inform these adults that switching completely to IQOS is a better choice than continuing to smoke. FDA determined that scientific studies show that switching completely from conventional cigarettes to IQOS reduces exposure to harmful or potentially harmful chemicals.”
“The FDA’s decision provides an important example of how governments and public health organizations can regulate smoke-free alternatives to differentiate them from cigarettes in order to promote the public health.”
“We’re delighted that the FDA authorized IQOS to be marketed as a modified-risk tobacco product,” said Billy Gifford, CEO of Philip Morris USA’s parent company, Altria Group, which will be marketing the product in the U.S. “This authorization gives PM USA an opportunity to communicate additional benefits of switching to IQOS and this decision is an important step for adult smokers.”
In a note to investors, Morgan Stanley described the FDA’s order as a positive development because it provides greater flexibility for IQOS to be marketed as relatively less harmful than cigarettes.
“The inability to make relative lower harm claims is a constraint to broader IQOS adoption in the U.S.,” wrote Morgan Stanley analyst Pamela Kaufman.
“Over time, PM can continue to submit additional information towards a full MRTP approval. The modified exposure designation combined with pending PMTA approval for IQOS 3 should accelerate MO’s [Altria’s] U.S. expansion strategy for IQOS. The FDA’s recognition of IQOS’s benefits relative to cigarettes may also enhance IQOS’ perception with international health agencies, helping its growth prospects,” Kaufman said.
Anti-smoking activists were less enthusiastic. In a joint statement, the Campaign for Tobacco-Free Kids, the American Cancer Society Cancer Action Network, the American Heart Association, the American Lung Association and the Truth Initiative, said the FDA marketing order would put consumers at risk.
“With today’s action, the FDA has created a real danger that kids and adults will falsely believe IQOS has been proven to present a lower health risk and that kids will be exposed to marketing that portrays IQOS, a highly addictive tobacco product, as an appealing, cool alternative to cigarettes, in much the same way as e-cigarettes,” the anti-tobacco groups wrote in their statement.
It’s official. The Trump administration has withdrawn the United States from the World Health Organization. The news comes as the Covid-19 pandemic continues to grip the globe and infections spike across the U.S.
Withdraw requires a years notice, so it will not go into effect until July 6, 2021. This raises the possibility the action could be overturned.
Congress received formal notification of the decision on Tuesday, more than a month after President Donald Trump announced his intention to end the U.S. relationship with the WHO and blasted the multilateral institution as a tool of China, according to an article in USA Today.
Democrats said the decision was irresponsible and ill-considered, noting it comes as the pandemic is raging and international cooperation is vital to confront the crisis.
“This won’t protect American lives or interests – it leaves Americans sick & America alone,” Sen. Bob Menendez, the top Democrat on the Senate Foreign Affairs Committee, tweeted after receiving the White House’s notification. “To call Trump’s response to Covid chaotic & incoherent doesn’t do it justice.”
The formal withdrawal comes as the United States nears 3 million reported coronavirus cases and more than 130,000 deaths, according to Johns Hopkins University data. Globally, there have been 11.6 million cases and almost 540,000 deaths, according to the story.
Trump and his advisers have blasted the WHO for failing to press China to be more transparent about the scope and severity of the Covid-19 outbreak, which began in Wuhan, China.
Trump has said that China “has total control” over the WHO, even though it contributes far less than the US to the health organization’s budget. The U.S. has contributed approximately $450 million dollars a year, according to the story.
Amanda Glassman, a public health expert and executive vice president of the Center for Global Development think tank, noted the world doesn’t just face today’s threat of Covid-19 but also the threat of future pandemics, which are more likely because of increased zoonotic transmission.
If the governor signs the legislation, Mississippi will increased the age to 21 to buy vapor products and penalties will increase for selling to minors.
In addition to penalties for sellers, minors will face penalties for possessing and use of e-cigarettes and other vaping products. Senate Bill 2596 conforms Mississippi law to new federal law to purchase tobacco and vaping products, according to an article in the Clarion Ledger.
If signed into law, several changes will also occur. For anyone selling or providing alternative nicotine products, the penalty increases from $250 for a first offense up to $1,000 for a third and subsequent offense.The maximum penalty is currently a $100 fine for a third or subsequent offense.
The penalties triple if the alternative nicotine product contains any controlled substance prohibited by law, or any other substance that causes the recipient to require emergency medical care.
If a person under 21 found by a court in possession of a tobacco or alternative nicotine product, the penalty will be $100 fine and a maximum 15 hours of community services for a first offense. For a second offense, a $300 fine and up to 25 hours of community service, and for a third and subsequent offense, a $500 fine and up to 40 hours of community service.
In addition to fines and penalties, a business selling tobacco and vaping products to minors could face suspension up to revocation of permits to sell the products based on the number of violations in a 12 month period.
Informa Markets Creative has announced it will hold the IECIE Shenzhen e-cigarette expo on August 20-22. The event will also be held virtually, simultaneously as the live event. The cost is $10 before July 20 and $20 after that date.
“This virtual expo is estimated to attract 10,000 vape users across the world, bringing more than 2500 vape exhibitors to go virtually to engage business online through any devices,” a press release states. “It’s especially designed to allow private business video/text chatting, business arrangement with vape brands and new product live showcases and multiple features to audiences.”
Visitors can login to the virtual expo beginning July 20 until August 20 to review all the vape brands profiles and product catalogs, the release states. Meanwhile exhibiting products preview and business meeting arrangements between visitors and exhibitors are also available during this period. All the private business meetings can be directly carried out inside the virtual expo in 3 days during 20-22 August.
IECIE Shenzhen eCig Expo is the largest e-cigarette exhibition in Asia, bringing together upstream industries, battery and power management Chips and Solutions, Battery and Power Management, Heating System, E-juice Flavors and Related Products while mainly displaying some finished products : Disposable pods, atomizer, mods kits, e-liquid (letter nicotine salt e-liquid), heating non-combustion equipment, OEM / ODM / brand , etc, according to the release.
The 2020 IECIE Virtual Expo has several features, including:
An AI buyer recommendation system
Adopting AI EXPO artificial intelligence platform to collect key information from visitor registration form and clicks, recommend products of corresponding exhibitor company to visitors. Once attendees enter the virtual expo, they will be asked to choose from a range of interests from product like mods, pods system to fields like vape businesses and even vape magazines. With these tags, attendees can filter all the exhibitors in the hall to locate their most wanted targets by clicking recommend button on the upside of the floorplan and making their way to the targeted exhibitor.
A Show Room
Multi-platform live broadcasting ensuring smooth and clear video during the exhibition. With a cloud system support, IECIE virtual expo enables visitors to video chat, text chat, voice chat, and even watch the on-site broadcasting from IECIE physical event.
A business matching system
The business matching system will allow for making appointments for business negotiations in advance, multimedia communication with buyers (video, Voice chatting etc.) and efficiently arrange private product demonstration for visitors.
Push notifications for SMS and Email
SMS or email reminder outside the platform will allow attendees to never let go of any message. Once business meeting requirements have been approved, the notification will be sent to an attendee via email or SMS so that they won’t miss any requests, according to the release.
A proposal to ban the sale of flavored e-cigarettes and other tobacco products in Chicago stalled in a City Council committee after running into an avalanche of opposition.
Owners of gas stations, convenience stores and tobacco stores — and trade groups representing them — showed up in force at the virtual meeting to accuse the City Council’s Committee on Health and Human Relations of “kicking them when they’re down,” according to an article in the Sun-Times.
They argued small businesses are fighting for survival after a double-whammy: first, the coronavirus pandemic; then, damage during civil unrest, which came when many were “woefully under-insured.”
The last thing they need is “legislative over-reach” that would cost them even more business, they said, noting that tobacco products account for 40% of revenue for a typical Chicago gas station — and that 52% of that tobacco revenue comes from flavored tobacco products.
“This is the equivalent to kicking this industry while they’re down. You not only lose out on flavored tobacco sales to adults. You lose a significant driver of other business. When people buy tobacco, they buy other things. So the business loses out on all of those sales. The city loses out on all of the revenue,” said Tanya Triche Dawood, vice president and general counsel for the Illinois Retail Merchants Association, the article states.
Dawood acknowledged there is “absolutely … an issue with teen vaping,” but it can be solved by “identifying products that are attractive to teens” and banning those — not by “taking products away from adults” like “tobacco- and menthol-flavored vapes,” she said.
“I’m not aware of any data that shows that pipe tobacco is gaining in popularity with teens. Neither is chew. Or even menthol cigarettes. But all of these products are included in this proposal,” Dawood said.
The vote was unanimous. On July 1, the U.S. Senate passed the Preventing Online Sales of E-Cigarettes to Children Act (S.1253) by unanimous consent. The legislation aims end online e-cigarette sales to minors by applying the same measures that are required when traditional cigarettes are purchased online. The House passed its version of the bill last year.
The National Association of Convenience Stores (NACS) said it strongly supports S. 1253, which “ensures responsible retailing of e-cigarettes and age verification across all channels. The legislation would require online sellers of e-cigarettes to ensure the delivery carrier verifies the age of the recipient upon delivery. It would also require online sellers to collect and remit the appropriate state and local taxes,” according to a story on the NACS website.
These rules are already in place for cigarettes and smokeless tobacco products purchased over the internet after Congress passes the Prevent All Cigarette Trafficking (PACT) Act, in 2010. Language for vapor products was not included in the law.
“It’s been long in coming, but finally the Senate has now passed legislation that requires the same proof of age requirement that is needed for tobacco products for e-cigarettes and vaping products, particularly those that are sold over the internet,” stated Senator John Cornyn in his speech on the Senate floor.
After Wednesday’s vote, the legislation is one step closer to becoming law. Last October, the House passed its version of the bill (H.R. 3942) on suspension. Given that the Senate bill is slightly different than the House version, the House will need to pass the Senate’s version before it can become law, according to NACS.
Women make up roughly half of the population, yet they remain underrepresented in many industries, especially among the senior echelons. In the tobacco industry, for example, women account for only 30 percent of the workforce, 21 percent of management and 20 percent of boards.
That represents a missed opportunity, not only for the individuals involved, but also at the corporate level. Research carried out by the FP Analytics Division of the U.S.-based Foreign Policy Group reveals that companies with more women in executive management and on boards outperform those with fewer women in such positions.
Companies with higher shares of women in senior management are not only more profitable, they also are more transparent and have significantly higher environmental, social and governance ratings. According to a 2019 report by the International Labour Organization, enterprises that promote gender diversity are 59 percent more likely to achieve greater creativity, innovation and openness than their more homogenous counterparts.
In the tobacco industry, women are helping drive the much-needed transformation to a more sustainable and inclusive future. Among other things, they are pushing their companies to focus on harm reduction, promoting greener farming practices among tobacco growers and advocating for equal pay.
During TMA’s 2020 virtual conference, an expert panel moderated by Regulation Strategy’s Patricia Kovacevic examined the barriers facing women throughout the employment pipeline and explored possible solutions. Drawing on research and personal experiences, the panelists agreed that the goal should not be to ‘fix’ women but rather to change the way people think about the workforce and leadership.
They also stressed the importance of mentorship, gender pay gap reporting and accountability. And they called on industry leaders to signal that gender equality and inclusivity matters to them—not just because it is ethical but also because it is good for business.
Online UK e-liquid store Vapester.co.uk has rebranded itself. The company’s online e-liquid store, which serves customers across the United Kingdom, has moved to a new domain name to coincide with the change.
As a result, Vapester.co.uk customers can now visit the company’s online store at VapeKit.co.uk to shop online for vaping supplies, according to a press release.
“While the company’s name and online address have both changed, the company continues to provide the same great service to customers across the UK, providing convenient access to e-liquids, vape kits, nicotine shots, and everything else a vaper needs to keep on vaping,” the release states. “Existing customers can continue to use their existing accounts, as login details for customer accounts remain the same.”
A vapor industry advocacy group is calling for the UK government to consider a similar VAT rate for vaping that currently applies to nicotine replacement therapies (NRT). The UK Vaping Industry Association (UKVIA) is calling upon government as the Chancellor of the Exchequer is widely reported to be looking at reducing the VAT rates in the wake of the coronavirus as the Government last did during the 2008 economic downturn, according to a press release.
In a letter to the Chancellor of the Exchequer, Rishi Sunak, the UKVIA urges the government to consider a level playing field in regard to the VAT rate between NRT and vaping products, to support adult smokers who would otherwise not quit smoking to make the switch to vaping, the release states.
The letter points to the recent Public Health England (PHE) Vaping in England Report that found that when vaping products were used in an attempt to quit, either alone or with licensed medication, success rates were comparable to, if not higher than, NRTs alone.
The current VAT chasm between NRT products (5 percent) and vaping (the full 20 percent VAT and the same as conventional cigarettes) despite the fact that e-cigarettes, whilst not considered a cessation product, have significant potential to have a positive impact on public health. “This is backed up by research commissioned by the NHS last year which revealed that e-cigs are twice as effective as nicotine patches, gum or sprays for quitting smoking,” according to the release.
John Dunne, director at UKVIA, said the vaping sector has been a “major retail success story this century and is playing a major role in getting smokers to quit, thereby helping cut the huge annual cost of healthcare” that is often associated with smoking.
“Yet according to research nearly 1 in 10 smokers do not switch to e-cigarettes because they considered them to cost too much,” he said. “Ensuring that the price of vaping products remains much lower than cigarettes is vitally important in continuing to encourage the some 7m smokers in the UK, who otherwise do not quit, to make the switch.”
He goes on to explain that the UK is still in the recovery phase of Covid-19 and a significant VAT reduction for vape products would pay back both economically and from a healthcare perspective.
“A VAT rate for vaping on par with NRT would also support the call in the recent PHE report for smokers to be encouraged to try regulated nicotine vaping products along with smoking cessation medications and behavioural support to increase their chances of successfully stopping smoking,” he said.
