Tag: e-cigarettes

  • Philippine Dept. of Education Supports Vapor Rules

    Philippine Dept. of Education Supports Vapor Rules

    Credit: GEO TV

    The Department of Education (DepEd) in the Philippines has expressed its support towards stricter measures on electronic nicotine delivery systems (ENDS) and electronic non-nicotine delivery systems (ENNDS), according to a statement penned by the agency’s leader.

    “On matters related to substance use prevention, education alone is not enough. In their classes, we teach our learners how to reject harmful substances. Outside these classes, we need policies and structures that will help reinforce our learners’ health-promoting choices, complementing what we teach them in school,” Secretary Leonor Magtolis Briones wrote in her support statement. The letter was released during a public hearing on the provisions of the Vaporized Nicotine Products Regulation Act, according to press note.

    The Senate hearing explored regulations on age restriction, online trade, product flavors, among other items. Currently, vaping products and heated tobacco products (HTPs) are already regulated under Republic Act 11467 (RA 11467), signed by President Rodrigo Roa Duterte in January 2020. Under RA 11467, selling vapor products and HTPs to persons below 21 years old is prohibited. However, the pending bills in the Senate, similar to the substitute bill at the House of Representatives, intend to reduce the minimum age of restriction to 18.

    “This a real concern for us in DepEd. Before the pandemic, the Philippine Pediatric Society (PPS) has coordinated with us to explore the determinants of e-cigarette use among [Grades 7 to 9] learners [and results showed] that 6.7 percent [of 11,500 learners surveyed] have tried and are using e-cigarettes,” Briones said.

    The PPS survey results showed that the top reasons for using vape among DepEd learners are online accessibility (32%), varied flavors (22%), and the belief that e-cigarettes are safer than tobacco (17%).

    “Especially now that we are in a pandemic, I appeal to our legislators to approach the issue from a health perspective. We are all first-hand witnesses of how any threat or attack to a country’s health system eventually affects every other sector of public life, from economics to education,” Briones noted in her statement.

  • Charlie’s Holdings Raises $3 Million in Private Stock Sale

    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.”

  • Montana Senate Bill Aims to Ban Local Vape Laws

    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.

  • Alabama House Passes Bill to Raise Age to Vape to 21

    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.”

  • Spyder Cannabis Acquires Vape Retailer 180 Smoke

    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.”

  • Kentucky Ends 15% Wholesale Tax on Vapor Hardware

    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.”

  • FDA Issues 3 More Warning Letters for Illegal E-liquids

    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.

    keep out
    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.

  • RELX Launches ‘Infinity and Essential’ E-cigs in Colombia

    RELX Launches ‘Infinity and Essential’ E-cigs in Colombia

    Photo: RELX International

    RELX International will launch its next-generation e-cigarettes, the Infinity and Essential, in Colombia this month. The Infinity features RELX International’s latest innovations in product design, vapor quality, mobility and overall user experience. The Essential allows users to experience key elements of the Infinity’s design at a more accessible price point.

    According to RELX, Infinity and Essential feature a full flavor and smooth puff due to the independently-developed Super Smooth Performance technology. With more than a year dedicated to the design process, this data-driven technology was developed by defining five key elements that constitute the perfect puff. This technology was perfected through 76 sensory tests and repeated refinements of the parameters measuring RELX Super Smooth Performance.

    RELX International will launch its next-generation e-cigarettes, the Infinity and Essential, in Colombia this month. The Infinity features RELX International’s latest innovations in product design, vapor quality, mobility and overall user experience. The Essential allows users to experience key elements of the Infinity’s design at a more accessible price point.

    Our goal is to help smokers who cannot or do not want to quit, to transition to a better alternative with confidence.

    RELX International will launch its next-generation e-cigarettes, the Infinity and Essential, in Colombia this month. The Infinity features RELX International’s latest innovations in product design, vapor quality, mobility and overall user experience. The Essential allows users to experience key elements of the Infinity’s design at a more accessible price point.

    According to RELX, Infinity and Essential feature a full flavor and smooth puff due to the independently-developed Super Smooth Performance technology. With more than a year dedicated to the design process, this data-driven technology was developed by defining five key elements that constitute the perfect puff. This technology was perfected through 76 sensory tests and repeated refinements of the parameters measuring RELX Super Smooth Performance.

    The design of the Infinity device was optimized more than 40 times and more than 12,000 pods were tested to ensure leak resistance and high-quality standards. Patent applications have been submitted for more than 50 innovations used in the device, including its leak-resistant design, e-liquid pods and wireless charging case. In March 2020, the Infinity was awarded the Red Dot Award: Product Design 2020.

    “I’m proud of the entire RELX global team for creating this beautifully-designed Infinity device with superior technology, and with a dedication to innovation that we are now known for worldwide,” said RELX International CEO Bing Du in a statement. “Ultimately our goal is to help current smokers who cannot or do not want to quit, to transition to a better alternative with confidence. The more budget-friendly Essential device also allows users to experience RELX’s premium quality features”.

  • Major Majority of Malaysians Want Vaping Regulations

    Major Majority of Malaysians Want Vaping Regulations

    A large majority of Malaysians want the government to regulate the vaping industry more heavily, according to a recent survey. The Malaysian Insights & Perspectives on Vape survey, commissioned by the Malaysian Vape Industry Advocacy (MVIA), showed that 87 percent Malaysians agree that a tax should be imposed on vaping products and 74 percent think that the revenue collected from vape products could be spent by the government on important sectors such as education.

    Kuala Lumpur
    Credit: Peter Nguyen

    The survey also revealed that 76 percent of those polled think the country’s economy will benefit from such regulations, according to an article in the Malay Mail. A sample size of 1,025 Malaysian adults were polled and “is reflective of the perception of all Malaysian adults nationwide.” Conducted by Green Zebras, a market research company, the survey was commissioned to get a better understanding of Malaysians’ perception on vaping and its use as a method of tobacco harm reduction, according to the MVIA.

    “The opinion poll shows most Malaysians want regulations on vape products. Official reports from the Ministry of Health indicate that there are over one million vapers in Malaysia and yet there are no regulations in place, leaving consumers no choice but to use unregulated products,” said Rizani Zakaria, president of MVIA. “Recent reports from local industry groups have already confirmed that the vape industry has significant potential to contribute to the Malaysian economy with capabilities to create jobs, develop existing businesses and SMEs within the industry, and attract investments. This is a fact that cannot be ignored, and the government must act quickly to introduce regulations on vape products.”

  • Judge: ‘No Party Shall Vape’ During Juul Labs Depositions

    Judge: ‘No Party Shall Vape’ During Juul Labs Depositions

    A California magistrate judge said vaping would be off-limits during upcoming depositions in multidistrict litigation against Juul labs. The suits allege that the e-cigarette manufacturer intentionally marketed product to teens, according to law360.com. Judge Jacqueline Scott Corley wrote that the court “confirms that no party shall vape during deposition questioning.” She added that individuals who vape can take however many breaks as they need. “These breaks shall not count against the presumptive seven-hour deposition limit.”

    Credit: Insurance Journal

    The actions include putative class actions, actions on behalf of school districts and other governmental entities, and individual personal injury cases. The lawsuits allege that Juul Labs “marketed its JUUL nicotine delivery products in a manner designed to attract minors, that [Juul Labs] marketing misrepresents or omits that JUUL products are more potent and addictive than cigarettes, that JUUL products are defective and unreasonably dangerous due to their attractiveness to minors, and that [Juul Labs] promotes nicotine addiction.”

    North Carolina was the first state to sue Juul over accusations that it targets underage youths with its products. Most specifically, the NC Attorney General’s office accuses Juul of violating the state’s Unfair and Deceptive Trade Practices Act.