Tag: news

Kaival Brands Group Announces Reverse Stock Split
Photo: Kaival Brands Innovations Group
Kaival Brands Innovation Group, the parent to Bidi Stick vaping products, announced a 1-for-21 reverse stock split that became effective at the opening of trading today, Thursday, January 25.
It’s not the first time the company has made such a move. In 2021, when the company applied to list on NASDAQ, the company implemented a 1-for-12 reverse split of its common stock, effective before the opening of the market on July 20. As a result of that reverse split every 12 shares were exchanged for one share of the common stock.
Kaival Brands’ Common Stock will continue to trade on the Nasdaq Capital Market under the symbol KAVL. The new CUSIP number for the Common Stock following the Reverse Stock Split will be 483104402.
The company’s board approved the Reverse Stock Split. The material effects of the Reverse Stock Split are:

Every 21 shares of the issued and outstanding Common Stock has been combined into one (1) share of Common Stock.
The number of outstanding shares of Common Stock has been proportionally reduced from 58,661,090 shares to approximately 2,793,386 shares.
The Reverse Stock Split will not reduce the total number of Kaival Brands’ authorized shares of Common Stock.
The ownership percentage of each Kaival Brands stockholder will remain unchanged, other than as a result of fractional shares. No fractional shares of Common Stock will be issued in connection with the Reverse Stock Split. Stockholders that would hold a fractional share of Common Stock as a result of the Reverse Stock Split will have such fractional shares of Common Stock rounded up to the nearest whole share of Common Stock.
The number of shares of Common Stock available for issuance under the Company’s equity incentive plans and the Common Stock issuable pursuant to outstanding equity awards and common stock purchase warrants immediately prior to the Reverse Stock Split will be proportionately adjusted by the ratio of the Reverse Stock Split. The exercise prices of such outstanding options and warrants will also be adjusted in accordance with their respective terms.
“Among other considerations, the Reverse Stock Split is intended to assist in bringing Kaival Brands into compliance with the $1.00 minimum bid price requirement for maintaining the listing of its Common Stock on the Nasdaq Capital Market, and to make the prevailing prices of the Common Stock more attractive to a broader group of institutional investors,” a press release states.
Stockholders owning shares via a broker, bank, trust or other nominee will have their positions automatically adjusted to reflect the Reverse Stock Split, subject to such broker’s particular processes. Such stockholders will not be required to take any action in connection with the Reverse Stock Split.
January 25, 2024
Schumer Wants Crackdown on Zyn Nicotine Pouches

Image: Tobacco Reporter archive
U.S. Senate Majority Leader Chuck Schumer is calling for a crackdown on Zyn nicotine pouches, arguing that the product will be the next “trend in addiction for teens,” according to USA Today. He has asked the U.S. Food and Drug Administration and the Federal Trade Commission to take action on the company’s marketing practices and the product’s health effects.
“Amid federal action against e-cigs and their grip on young people, a quiet and dangerous alternative has emerged, and it is called Zyn,” said Schumer. “I am delivering a new warning to parents because these nicotine pouches seem to lock their sights on teens and use social media to hook them.”
“The amount of nicotine is highly addictive, and much more needs to be done to understand and communicate the health risks for young people,” Schumer said.
Zyn’s parent company said that it both meets and exceeds industry regulations.
“The FDA remains concerned about any tobacco product that may appeal to youth,” said Brian King, director of the FDA’s Center for Tobacco Products, in response. “The FDA uses a variety of surveillance tools to monitor the evolving tobacco product landscape and to identify emerging threats to public health.”
King noted that the FDA closely monitors “those in the supply chain for compliance with federal law.”
“As always, we are committed to holding those accountable who sell unauthorized tobacco products, including those labeled, advertised and/or designed to encourage youth use,” said King.
The Federal Trade Commission did not comment, noting that it “does not publicly speculate on external requests for investigations or comment on letters from member[s] of Congress,” according to USA Today.
January 25, 2024
Ohio Veto Override Bans Local Tobacco Rules
Credit: Lucitanija
Local governments in Ohio cannot enact tobacco and nicotine rules. Those regulations must come from the state level.
The Ohio Senate on Wednesday voted to override Gov. Mike DeWine’s veto on a provision prohibiting local governments from enacting regulations on the sale of tobacco — including by banning flavored vaping products.
The policy, which will go into effect in three months, means that newly enacted flavored tobacco bans in Columbus, Worthington and other central Ohio cities cannot be enforced.
Republican state lawmakers have tried multiple times to prohibit local governments from restricting the sale of tobacco, only to be thwarted by DeWine’s vetoes.
In 2022, he struck down such a proposal. Last July, he struck the provision from the rest of the state budget, saying that local bans were “essential” to curb nicotine use, especially among children, without a statewide ban in place.
January 25, 2024
Activists Criticize Exclusionary Tactics at COP10

Photo: Alexey Novikov
The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) today issued a sharp critique of the World Health Organization’s Framework Convention on Tobacco Control (FCTC) for its exclusion of consumer groups and harm reduction advocates from the 10th Session of the Conference of the Parties (COP10).
“CAPHRA argues that this exclusionary practice is in stark contrast to the successful, pragmatic approaches of countries like New Zealand, the Philippines and Malaysia, which have embraced vaping as a harm reduction tool,” said Nancy Loucas, a public health policy expert and passionate advocate for tobacco harm reduction and executive coordinator of CAPHRA.
The press release condemns the COP10 meetings for silencing the voices of those who advocate for harm reduction strategies, such as vaping, which have been shown to significantly reduce smoking prevalence in countries where they are available and regulated.
CAPHRA points out that the prohibitionist approach of countries like Australia, which recently banned vaping products, is not in the best interest of public health.
“CAPHRA calls on FCTC officials to open their minds to harm reduction and to consider the evidence from countries like New Zealand, where smoking rates have decreased due to the availability of regulated vaping products,” said Loucas.
The organization stresses the importance of including consumer groups in the decisionmaking process, as they provide essential insights into the needs of smokers and how alternative products can be used effectively.
January 25, 2024
Ploom X Advanced Named ‘Product of the Year’

Image: JTI
Japan Tobacco International’ s Ploom X Advanced device has been named the best product available in the heated tobacco category at the U.K. Product of The Year Awards 2024.
Product of the Year is the U.K.’s largest consumer survey of product innovation. Every year over 10,000 shoppers vote to crown the winning products in each category, giving retailers a picture of what customers think about the products they stock.
Launched in September 2023, the Ploom X Advanced is the latest heated tobacco device from JTI, featuring an optimized heating system, with higher vapor volume during initial puffs offering an enhanced user experience, and faster charging, now taking less than 90 minutes to achieve a full
“Just a few months after the launch, we are thrilled that Ploom X Advanced has come out on top in the Product of the Year awards 2024,” said JTI UK Marketing Director Mark McGuinness. “In response to consumer feedback, we made some positive changes when we launched Ploom X Advanced, and the brand has gone from strength to strength with device sales doubling and EVO tobacco stick sales tripling year on year. With the Heated Tobacco category continuing to grow at a rapid rate, this award shows not only the success of our product, but the clear consumer interest in the category and Ploom.”
The U.K. heated tobacco category is currently worth £105 million ($133.67 million) in traditional retail and growing 20.5 percent year-on-year.
January 25, 2024
XJOY Partners with Smoore to release 1000 puffs in 2mL

XJOY has partnered with Smoore to release a single-use vape that offers more than 1,000 puffs in 2mL.
“I am very fortunate for the opportunity to showcase our latest fully automated production line, all housed in the secure dust free production rooms.” said Thalia Cheng, U.K. business director at SMOORE. “As you can see, we are working in full capacity to bring it to the U.K. to get the first taste of XJOY. We send this first batch of our newest innovation in collaboration with XJOY as our dedicated contribution to support U.K.’s smokers in their smoke-free journey.”
XJOY Bar 1000 is planned to be stocked by the first 1000 participating stores around the U.K. by February.
“Our retail partners are all very excited to take on our XJOY Bar 1000, because it provides them with a significant advantage over the other vapes. For one, it is the best and only legal single-use vape that can achieve 1,000 puffs, lasting longer, which is a big deal for our consumers especially now given the rising living costs.” explained an XJOY spokesperson.
“Consumers will appreciate that our products are competitively priced compared to other 600 puffs vapes available on the market.”
January 25, 2024
Most Defendants Dropped From NJOY Vape Suit

Credit: Success Photo
A U.S. District Court in California has dismissed a lawsuit filed by NJOY, the vape subsidiary of Altria Group, against multiple manufacturers, distributors, and retailers of disposable vapes. However, the case against IMiracle, the manufacturer of Elf Bar, has not been dismissed.
NJOY filed the lawsuit last October. The company alleges that the companies named in the suit are selling products illegal in California and the United States. NJOY asked for a nationwide injunction that would prevent future importation and sale of the products, and compensatory and punitive damages paid to NJOY.
Among the companies charged were manufacturers and distributors of Breeze, Elf Bar, Esco Bar, Flum, Juice Box, Lava Plus, Loon, Lost Mary, Mr. Fog and Puff Bar. Together the brands make up the majority of the U.S. disposable vape market.
The dismissal order was entered on Jan. 18 by Judge Terry J. Hatter Jr. of the U.S. District Court for the Central District of California. The court found that the defendants did not participate in “the same transaction, occurrence, or series of transactions or occurrences,” and therefore were improperly joined in the lawsuit. Because of that, Judge Hatter dropped all parties from the suit except the first named defendant, IMiracle, according to media reports.
The judge entered the orders “without prejudice” allowing NJOY to refile against the dismissed defendants individually or in smaller groups with demonstrable relationships. The court also dismissed NJOY’s claim of unfair competition and its motion for a preliminary injunction barring sales and distribution by the defendants.
The court denied NJOY’s motion to serve IMiracle, the manufacturer of Elf Bar headquartered in Hong Kong, by email, citing an established international process, the Hague Convention, for serving legal notice to foreign defendants.
NJOY’s lawsuit against IMiracle cannot proceed until the Chinese manufacturer is served notice.
January 24, 2024
Cigarette, Vape Sales Slow While Pouches Boom

Credit: Jet City Image
Sales of cigarettes and e-cigarettes have declined in the last two weeks, while sales of oral nicotine pouches have seen significant growth, according to analysts at TD Cowen.
They say in a research note that cigarette volumes across multiple channels were down 10 percent in the two weeks ending Jan. 13, a steeper decline than the trailing four weeks and 12 weeks.
Bonnie Herzog, managing director at Goldman Sachs, remain cautious on the U.S. tobacco/nicotine industry in the near term as the tobacco consumer remains under substantial financial pressure.
She stated in an email that many consumers are being more selective in their purchases and turning to more affordable alternatives, such as 4th tier/deep discount cigarettes, modern oral tobacco and, increasingly, illicit or gray market disposable vapor products.
“Shifts in category and consumer spending dynamics have been further exacerbated by flavor ban momentum at the state & federal level (Final Rule expected in March) and uncertainty with regard to the future of the e-cig category and category innovation (with FDA PMTA reviews still pending on big market brands such as JUUL and VUSE Alto, as well as menthol variants more broadly),” Herzog wrote.
E-cigarette sales fell 11.3 percent in the two-week period and 10.7 percent in the four-week period, according to Barron’s.
Sales of smokeless tobacco, including nicotine pouches, meanwhile grew 12.1 percent in the two-week period and 13 percent in the four-week period.
The smokeless category continues to show strong dollar sales growth driven by the Zyn brand, the analysts say.
January 24, 2024
Juul Labs Supports Tighter Rules on Youth Access

Credit: Piter2121
Juul Labs wants tighter e-cigarette regulations to help stave off youth demand while also making the industry safer overall.
In a recent open letter addressed to the Florida House of Representatives and Senate, the maker of JUUL vaping products urged lawmakers to endorse SB 1006 and HB 1007, legislative proposals to regulate the marketplace for legal nicotine vaping products in Florida.
The Senate and House versions of the bill both require state regulators to develop a directory listing of certified nicotine products manufacturers and certified nicotine products. They also subject retail and wholesale nicotine products dealers to inspections or audits; prohibits sale, shipment, or distribution of certain nicotine products into this state; provides criminal penalties; requires entities that seek to sell nicotine products or dispensing devices to obtain wholesale nicotine products dealer permit; provides permit holders must consent to inspections and searches without warrant; provides for seizure and destruction of unlawful nicotine products, according to Florida’s Senate.
In the letter, Juul Labs said it “is on a mission to transition the world’s billion adult smokers away from combustible cigarettes, eliminate their use, and combat underage usage of our products,” according to media reports.
The letter highlighted what the company described as extensive efforts to ensure product quality and compliance with regulatory standards. The letter also emphasized significant investments in product development, regulatory science, and manufacturing quality controls.
Penned by Juul Labs’ regional director for State Government Affairs, Jennifer Cunningham, the letter states that the company wants a better-regulated market. Cunningham cited measures implemented by Juul Labs, including supporting “Tobacco 21” laws to raise the legal age for tobacco product sales to 21, restricting vaping flavors to tobacco and menthol, limiting product purchases per transaction, and promoting retail partner compliance through ID checking and technology advancements.
However, despite these efforts, the letter points out the challenges posed by a burgeoning illegal vape market in Florida, with the state being the primary destination for sales of illicit vapor products in the U.S. The vape maker also expressed readiness to assist Florida legislators in formulating policies that foster a well-regulated market for legal vapor products.
January 23, 2024
FDA Issues MDO for Tobacco-Flavored Bidi Stick
The U.S. Food and Drug Administration has issued a marketing denial order (MDO) to Bidi Vapor LLC for its Bidi Stick classic e-cigarette. The Bidi Stick is a closed-system, disposable, tobacco-flavored vaping device.
“FDA has a key role to protect the public from the dangers of tobacco use,” said Matthew Farrelly, director of the Office of Science within FDA’s Center for Tobacco Products (CTP). “Integral to that role, our tobacco application review process relies on scientific evidence that demonstrates a product provides a net benefit to public health that outweighs the known risks. The science in this application did not show that.”
The company must not market or distribute this product in the United States or they risk FDA enforcement action. The company may submit a new application to the agency for review that addresses these deficiencies.
After reviewing the company’s PMTA, the FDA determined that the application lacked sufficient evidence to demonstrate that permitting marketing of the product would be appropriate for the protection of the public health, which is the standard legally required by the 2009 Family Smoking Prevention and Tobacco Control Act, an FDA press release states. Specifically, evidence submitted by the applicant did not demonstrate an overall net benefit to people who use tobacco products and lacked sufficient evidence to address health risks.
“The Center has made considerable progress in reviewing the massive volume of tobacco product applications submitted to the agency, thanks to the tireless efforts of our dedicated legion of civil servant scientists,” said Brian King, director of the CTP. “The Center remains committed to processing submitted applications as expeditiously as possible while ensuring the utmost scientific integrity of the reviews.”
Kavial Brands, the manufacturer of Bidi Stick, is expected to appeal the decision.
China-based Shenzhen IVPS, the parent to SMOK brand vaping devices, filed an appeal with the New Orleans, Louisiana-based U.S. Court of Appeals for the Fifth Circuit after it received an MDO and was joined in the suit by a Dallas, Texas-based distributor of the SMOK products that were denied marketing.
on Jan. 3, the U.S. Court of Appeals for the Fifth Circuit ruled that the FDA acted “arbitrarily and capriciously” in rejecting the premarket tobacco product applications (PMTA) of Wages and White Lion Investments, doing business as Triton Distribution, and Vapetasia for approval to sell their products in the United States.
The 9-5 decision by the New Orleans-based 5th U.S. Circuit reversed a July 2022 decision by a three-judge panel of that court.
The agency “sent manufacturers of flavored e-cigarette products on a wild goose chase,” telling them what would be needed to approve their products, and then denying all applications, the court said in an opinion by Judge Andrew S. Oldham. The FDA “never gave petitioners fair notice that they needed to conduct long-term studies on their specific flavored products,” Oldham wrote.
January 23, 2024