Author: Marissa Dean

Kaival Brands Acquires Patents from GoFire

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Eric Mosser | Image: Tobacco Reporter archive
[T]he purchase of this extensive patent portfolio marks the first step in diversifying our product offerings for adult consumers and potential revenue streams.”
Eric Mosser, president and CEO, Kaival Brands
Kaival Brands Innovations Group has acquired an extensive patent portfolio from GoFire Inc. with the goal of diversifying its product offerings and creating near-term and longer term revenue opportunities.
The acquired assets will be housed in Kaival Labs, a wholly owned subsidiary of Kaival Brands, which develops new branded and white label products and services in the vaporizer and inhalation technology sectors.
In the near term, Kaival Brands expects to seek third-party licensing opportunities in the cannabis, hemp/CBD, nicotine and nutraceutical markets as a means of monetizing its new patents. Longer term, the company believes it can utilize the acquired patents to create innovative and market-disruptive products, including patent-protected vaporizer devices and related hardware and software applications.
The GoFire patent portfolio includes 12 existing patents and 46 pending patents with novel technologies across extrusion dose control, product preservation, tracking and tracing usage, multiple modalities (i.e., different methods of vaporizing) and child safety. The patents and patent applications cover territories including the United States, Australia, Canada, China, the European Patent Organisation, Israel, Japan, Mexico, New Zealand and South Korea. The portfolio also includes a proprietary mobile device software application that is used in conjunction with certain patents in the portfolio.
“This is a transformative asset acquisition for Kaival Brands,” stated Eric Mosser, president and chief operating officer of Kaival Brands. “As we look to the future of our company beyond our core Bidi Stick distribution business, the purchase of this extensive patent portfolio marks the first step in diversifying our product offerings for adult consumers and potential revenue streams. We are already exploring near-term, revenue generating opportunities through royalty-based licensing agreements with third-party partners in the cannabis, hemp/CBD, nicotine and nutraceutical spaces. Our longer term plan is to incorporate this intellectual property into new, adult-focused products and expand into new segments such as cannabis/hemp, nutraceutical and pharmaceutical markets that we can sell ourselves through existing and potential new distribution partners once all necessary regulatory clearances have been obtained. Additionally, we believe that the portfolio provides us with certain strategic advantages due to the limited number of patents in the vaporizer space. In short, we believe this forward-looking acquisition, with the acquisition consideration structured in key respects at premiums to the current market value of our common stock, broadens and strengthens our company and our prospects considerably as we seek to drive value for our stockholders.”
Nirajkumar Patel, chief science and regulatory officer of Kaival Brands and owner of Bidi Vapor, stated, “We believe these patents and patent applications represent a valuable opportunity to increase our product portfolio and diversify revenue streams. From a science perspective, these patents are innovative with novel applications, and we look forward to developing these patents into commercial or pharmaceutical products for adult consumers. From a regulatory point of view, there are only so many patents in the vaporizer space, and we believe that acquiring an extensive portfolio such as this is a wise strategic purchase for the long-term success of Kaival Brands.”
Peter Calfee, CEO of GoFire, stated, “We are excited to place these valuable assets into Kaival’s hands. After working hard to create this intellectual property with a goal of providing safer and healthier products to the marketplace, we engaged in a comprehensive assessment of how best to further its development into actual products and services with consumer reach. At the end of that process, we chose to invest our patent portfolio in Kaival in exchange for Kaival equity as the right fit for our technology. We have confidence in Kaival’s management team and board of directors as Kaival seeks to further develop and ultimately monetize this technology for the benefit of all Kaival stockholders, including GoFire’s stockholders. We look forward to realizing the potential market strength of this patent portfolio with Kaival.”
June 2, 2023
Sweden Close to Smoke-Free Status

From left to right: Julia Kril (World Vapers Alliance); MEP Johan Nissinen; Carissia During (Considerate Pouchers); MEP Charlie Weimers; Michael Landl (World Vapers’ Alliance) | Source: World Vapers’ Alliance
Sweden has almost reached smoke-free status, which is considered 5 percent of the population or less smoking, reports AP. In 2019, 6.4 percent of Swedes over the age of 15 were daily smokers. Last year, 5.6 percent of the population were smokers, according to the Public Health Agency of Sweden.
“We were early in restricting smoking in public spaces, first in school playgrounds and after school centers and later in restaurants, outdoor cafes and public places such as bus stations,” said Ulrika Arehed, secretary-general of the Swedish Cancer Society. “In parallel, taxes on cigarettes and strict restrictions on the marketing of these products have played an important role.
Members of European Parliament expressed concern with the European Union approach toward smoking cessation, noting a need for an approach following that of Sweden. Charlie Weimers and Johan Nissinen called for a more open approach toward harm reduction in the EU at a press conference in Brussels that was hosted by the World Vapers’ Alliance.
“The Swedish case presents the third and final determining pillar in the pro-harm reduction argument,” said Michael Landl, director of the World Vapers’ Alliance. “The science, the experience of the consumers and now the Swedish example are proof that harm reduction works in achieving a smoke-free society. Now we have an undeniable case that the EU-wide regulation must be risk-based and evidence-supported.”
“Policy should be evidence-based,” said Weimers. “WHO [World Health Organization] will soon classify Sweden as Europe’s first smoke-free country because of harm reduction policies and widespread use of snus. Sweden has a wide range of harm reduction products: We have snus, nicotine pouches, vaping, etc. People are given a choice!”
Nissinen said, “It is clear that smoking kills, and we need to do everything we can to prevent those unnecessary deaths. Sweden is the best example of how this is achievable, namely with a pragmatic harm reduction approach. It is the only country in the EU where snus is legal and popular, with 18 percent of the population using it. Consuming snus instead of cigarettes saved many Swedish lives. It is time that the EU Commission expects this reality and starts acting accordingly.”
“Snus has been used since the 1800s, so we have more than 200 years of a case study that proved that tobacco harm reduction works. Snus is a great way to continue consuming nicotine without harmful chemicals you take from the traditional combustible cigarettes,” said Carissa During, the director of the Considerate Pouchers. “Many countries in Europe are trying to overregulate or ban alternative nicotine products. Policymakers believe that banning something will make them disappear. We know that it is not true.”
The WHO, however, attributes Sweden’s declining smoking rate to tobacco control measures, including information campaigns, advertising bans and “cessation support” for those wishing to quit. The agency stated that Sweden’s tobacco use is at more than 20 percent when including snus and similar products.
“Switching from one harmful product to another is not a solution,” the WHO said in an email, referring to snus. “Promoting a so-called ‘harm reduction approach’ to smoking is another way the tobacco industry is trying to mislead people about the inherently dangerous nature of these products.”
June 2, 2023
Tobacco Plants Used to Make Medicines

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The tobacco plant Nicotiana benthamiana is being used to create pharmaceuticals more sustainably than industrial manufacturing methods, according to a report in EurekAlert!
University of Queensland researchers have used the plant to create a drug to treat multiple sclerosis.
“We are using the natural ability of plants to produce cyclotides—strings of amino acids in a circular shape—which makes them very stable and suitable as oral drugs,” said David Craik, professor at the University of Queensland’s Institute for Molecular Bioscience.
“Using modern molecular biology techniques, we can effectively instruct the plant cell to produce the molecule of interest.
“The wild tobacco leaves are then harvested, freeze-dried, and the molecule is processed to be turned into oral medication.”
“Harnessing plants as ‘biofactories’ is more cost-effective as it uses fewer resources and is less wasteful, with a much simpler production process,” said Mark Jackson from the Institute for Molecular Bioscience, comparing the process to industrial manufacturing methods. “This method can also scale up very sustainably—using just light, water and nutrients.”
“We have shown it is possible to scale up production of cyclotides in plants, providing a platform for growing other medications for pain, cancer or obesity,” Craik said. “There is also an opportunity to build capacity for biomanufacturing in Australia with advances in vertical farming—where we can easily have a controlled environment to grow the plants.”
Tobacco Reporter covered the potential of tobacco as green bioreactors in-depth in its April 2022 issue.
June 2, 2023
Vaping Up in U.K. Prisons

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Vaping has surged in U.K. prisons since a smoking ban went into effect in 2017 (in England and Wales), according to Filter.
In the 2021–2022 financial year, prisoners spent close to £8 million on vapor products. Prisoners have access to vapes as well as nicotine-replacement therapy.
While the surge in vaping has been positive in terms of harm reduction, the abrupt change has had its challenges. With the prohibition of smoking in prisons came illicit cigarettes and trading/selling other personal property, including meals, in order to obtain cigarettes.
The Howard League for Penal Reform “has supported making prisons smoke-free in principle, given the health risks to both prisoners and staff,” said Andrew Neilson, director of campaigns. “But we’ve always been concerned that the ban was implemented responsibly and that prisoners were given the proper support and resources to move away from smoking.”
Neilson cited a general lack of provisions to support mental and physical health, including lack of access to fresh air. “Prisons are still struggling to deliver these kinds of open regimes after the pandemic effectively locked prisons down and saw people kept in their cells 23 hours a day.”
The smoking ban raises questions, according to Andy West, who teaches philosophy in prisons, when a prison cell is someone’s residence and when “people still want to smoke” and “prisons seem to stoke addictions.” He said that illicit cigarettes are “more dangerous” and “Prohibition always creates a bigger monster than the one it kills.”
Despite this, the number of prisoners who have turned to vaping and stuck with it is promising. “The fact that many people have access to vaping products is welcome news from a tobacco harm reduction perspective,” said Debbie Robson, senior lecturer in tobacco harm reduction at King’s College London. “Great progress has been made in creating a smoke-free prison estate despite doubting it was achievable given the high smoking rates in prison settings.”
Robson speaks with formerly incarcerated individuals while conducting research, and many have expressed that their first vaping experiences were in prison, and “some have stayed smoke-free ever since.”
“As a nurse, that makes me question why a prison setting may be the first time someone has the opportunity to use a vape,” she said. Outside the prison system, “health and social care practitioners can do more to raise awareness and reduce barriers to vaping in groups where smoking prevalence is high,” she said.
June 2, 2023
British Government Cracks Down on Kids Receiving Vapes

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The British government is cracking down on a loophole that allows retailers to give free vape samples to kids, reports Reuters.
“I am deeply concerned about the sharp rise in kids vaping and shocked by reports of illicit vapes containing lead getting into the hands of school children,” Prime Minister Rishi Sunak said. “The marketing and the illegal sales of vapes to children is completely unacceptable.”
“We should continue to encourage smokers to swap to vaping as the lesser risk whilst preventing the marketing and sale of vapes to children,” England’s chief medical officer, Chris Whitty, said.
The government plans to review the rules on issuing fines to shops that sell vapes to those under the age of 18 in order to more easily allow local authorities to issue on-the-spot fines and fixed penalty notices.
The U.K. Vaping Industry Association (UKVIA) expressed support for the government’s decision.
“The UKVIA fully supports the government’s actions to protect minors and urges the Prime Minister to ensure that this tough stance is followed up with equally tough action,” said John Dunne, director general of the UKVIA, in a statement. “For too long, some rogue firms have felt they had free reign to sell a product designed to help adult smokers quit to youngsters because they realized that the chances of getting caught were slim at best.
“Even if they get caught, the fines—which have been as low as just £26—are no deterrent, so we welcome the review into fines and repeat our calls that they should be up to £10,000 per instance and be backed up by a retail licensing scheme, which would include age verification requirements and robust enforcement by Trading Standards departments up and down the country.
“Sadly, many Trading Standards departments are not resourced anywhere near enough to clamp down on the illicit and illegal vape sales, and this is an issue that the government should now look at very seriously indeed.
“Data in the possession of the UKVIA shows that very few prosecutions have been made for underage or illicit sales across the country, and this must be addressed as a matter of urgency,” Dunne said. “Unless unscrupulous traders know that selling vapes to children is an endeavor that would be financially ruinous to them, then they will continue to do so.”
“We totally agree that there can be no justification in giving free vape samples to children—whether or not they contain nicotine—but any new measures the government does impose in this area must not impact on the tremendous work being done by stop smoking centers around the country.”
June 2, 2023
India Requires Tobacco Warnings on Streaming

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India is requiring streaming sites like Netflix and Amazon Prime Video to show prominent warnings about smoking and tobacco use in shows where tobacco products are portrayed, reports Reuters.
The Cigarette and Other Tobacco Products Amendment Rules 2023 require streaming services to display “anti-tobacco health spots” that are at least 30 seconds long at the start and middle of a program. The services also have to display an anti-tobacco health warning as a “static message” at the bottom of the screen when tobacco products are displayed. Audio-visual disclaimers about the negative effects of tobacco use are also required.
“India’s new regulations will ensure that streaming services are not the next vehicle for Big Tobacco’s aggressive targeting of Indian youth,” said Yolonda Richardson, a Campaign for Tobacco-Free Kids executive.
If streaming sites fail to adhere to the new rules, the federal government will take suo moto action.
June 2, 2023
IEA Publishes its Annual Nanny State Index

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The Institute of Economic Affairs (IEA) has published its Nanny State Index, an annual evaluation ranking Europe’s worst places to eat, drink, smoke and vape.
The IEA’s home country, the U.K., ranks No. 11 on the list. While the U.K. has the most restrictive tobacco regulation in Europe, it has some of the most liberal policies on e-cigarettes.
Turkiye is listed as the most restrictive place in Europe to eat, smoke, drink and vape, and Germany is the most liberal in these aspects.
“With the U.K. introducing some of the world’s most nannying policies on food, it’s no surprise to see it rising up the league table against stiff competition,” said report author Christopher Snowdon, who heads the department of lifestyle economics at the Institute of Economic Affairs. “The U.K. scores poorly in every category except e-cigarettes, where it is the best in show.
“Scotland and Wales drag down the overall score by having minimum pricing for alcohol, and the U.K. as a whole is the worst place in Europe to be a smoker.
“With alcohol taxes rising sharply this year and more food regulation to come, things will only get worse,” Snowdon said.
June 2, 2023
Altria Completes Acquisition of Njoy

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Altria Group has completed its acquisition of Njoy Holdings. The tobacco giant has also updated its guidance for 2023 full-year adjusted diluted earnings per share (EPS) in connection with the transaction.
“The completion of this transaction is a transformative step in our goal of ‘Moving Beyond Smoking,’” said Billy Gifford, Altria’s CEO. “We are pleased to have received antitrust clearance, and we are now fully focused on responsibly accelerating U.S. adult smoker and adult vaper adoption of Njoy Ace, currently the only pod-based e-vapor product to receive marketing authorization from the FDA.
“Our updated 2023 full-year EPS guidance range includes planned investments behind the U.S. commercialization of Njoy Ace and reflects our goal to deliver strong shareholder returns while making progress toward our vision.”
“We are excited to combine our resources with Njoy’s talented team to benefit adult tobacco consumers across the country,” said Shannon Leistra, the new president and CEO of Njoy.
As a result of the transaction, Altria expects to deliver 2023 full-year adjusted diluted EPS in a range of $4.89 to $5.03, representing a growth rate of 1 percent to 4 percent from an adjusted diluted EPS base of $4.84 in 2022.
“Our 2023 full-year adjusted diluted EPS guidance range includes planned investments in support of the company’s vision, such as (i) continued smoke-free product research, development and regulatory preparation expenses, (ii) enhancement of the company’s digital consumer engagement system and (iii) marketplace activities in support of the company’s smoke-free products, including planned investments behind the U.S. commercialization of Ace,” Altria wrote in a press note.
Altria’s updated guidance range also includes estimated amortization charges of approximately $50 million for the remainder of 2023 related to intangible assets acquired in the transaction.
June 1, 2023
Kingston E-Liquids and Innokin Partner on Vape

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U.K. e-liquid brand Kingston E-liquids has partnered with Innokin on the Podbar Salts Endura S1 kit to address issues surrounding disposables, reports PR Newswire.
The Endura S1 is a refillable, rechargeable device and is offered in a co-branded package containing Kingston’s new Podbar Salts e-liquid. The Podbar Salts Endura S1 starter kit delivers approximately 3,500 puffs using the included 10 mL bottle and is Tobacco Products Directive compliant.
“We always look to deliver quality and value to our customers and don’t believe there should have to be a compromise to achieve this,” said John Wilson, managing director of Kingston E-liquids. “The Podbar Salts Endura S1 allows our customers to experience true Kingston flavors at a fraction of the cost of disposables with all the convenience they demand. Partnering with Innokin has helped us offer a better solution for transitioning smokers, and we look forward to developing this important part of our customer experience.”
June 1, 2023
Individual Stick Warnings Coming

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Canada will soon require that health warnings be printed directly on individual cigarettes—becoming the first country in the world to take this approach, according to the Government of Canada.
The new Tobacco Products Appearance, Packaging and Labeling Regulations will be part of the government of Canada’s continued efforts to help adults who smoke to quit, to protect youth and nontobacco users from nicotine addiction and to further reduce the appeal of tobacco. Labeling the tipping paper of individual cigarettes, little cigars, tubes and other tobacco products will make it virtually impossible to avoid health warnings altogether. In addition, the regulations will support Canada’s Tobacco Strategy and its target of reaching less than 5 percent tobacco use by 2035, according to a government press release.
These regulations will come into force on Aug. 1, 2023, and will be implemented through a phased approach that will see most measures on the Canadian market within the year. Retailers will carry tobacco product packages that feature the new health-related messages by the end of April 2024. King-size cigarettes will be the first to feature the individual health warnings and will be sold by retailers in Canada by the end of July 2024 followed by regular size cigarettes, little cigars with tipping paper, and tubes by the end of April 2025.
Other measures include strengthening and updating health-related messages on tobacco product packages; extending the requirement for health-related messaging to all tobacco product packages; and implementing the periodic rotation of message.
The new regulations will be published in the June 7, 2023, edition of the Canada Gazette—Part II. In the interim, copies of the full regulations are available upon request by contacting pregs@hc-sc.gc.ca.
June 1, 2023