Charlie’s Holdings has raised $3 million through the private sale of 351,669,883 shares of common stock to the company’s founders, Brandon Stump, CEO, and Ryan Stump, chief operating officer, the company announced. Charlie’s Holdings intends to use the proceeds to drive growth, facilitate 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,” said Jeff Fox, a member of Charlie’s board of directors.
“Charlie’s invested nearly $5 million for its initial PMTA submission, and the company was in need of additional capital. 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.”
Chief Financial Officer David Allen 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.”