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  • Charlotte’s Web Closes BAT Transaction, Adds $10 Million Equity Injection

    Charlotte’s Web Holdings has completed a two-part transaction with BT DE Investments, a subsidiary of British American Tobacco, that converts existing debt to equity and brings in fresh capital. The company first amended and converted in full the convertible debenture it had issued to BAT on November 14, 2022, which carried a principal of CAD75,341,080 (USD54.7 million). Together with CAD14,223,321 (USD10.3 million) in accrued interest, the total converted amount of CAD89,564,401 (USD65 million) was settled through the issuance of 95,281,277 common shares at a conversion price of CAD0.94 per share.

    Concurrently, BAT subscribed to a non-brokered private placement of 14,662,765 additional common shares at the same CAD0.94 price, generating gross proceeds of USD10 million (CAD13.8 million). The company said the net cash will support its participation in the anticipated CMMI Medicare pilot program and other medical-channel initiatives, a pathway intended to let eligible Medicare beneficiaries access CBD products through physician consultation, subject to program requirements and regulatory approvals. The transaction remains subject to final approval from the Toronto Stock Exchange.

    CEO Bill Morachnick framed the deal as a strengthening of the company’s balance sheet and capital position, describing increased financial flexibility and a streamlined capital structure that better positions Charlotte’s Web to execute its growth strategy and expand access. Charlotte’s Web, a Certified B Corporation headquartered in Louisville, Colorado, is a botanical wellness company focused on hemp extract products, including full-spectrum and broad-spectrum CBD as well as other cannabinoid offerings. Its shares trade on the TSX under “CWEB” and on the OTCQX under “CWBHF.”

  • Alaska Vape Tax Heads to Governor’s Desk

    Four years after Governor Dunleavy vetoed a similar measure, the Alaska Legislature passed Senate Bill 24, imposing the state’s first tax on electronic cigarettes and related products. The bill passed the House 24-16 and cleared the Senate on a 15-5 concurrence vote on May 20, the final day of the legislative session. The legislation was the third such bill championed by retiring Senate President Gary Stevens, R-Kodiak, who framed it as a measure to counter the tobacco industry’s efforts to attract young users as traditional cigarette consumption declines.

    If signed into law, the bill would impose a 25% tax on retail e-cigarette products and prohibit purchases by anyone under 21, matching the legal age for traditional tobacco. The state’s tobacco tax had not been updated since 2006, before e-cigarettes were widely marketed, and while many Alaska municipalities had since updated their tax systems to include vaping products, the state had not. The State Department of Revenue estimates the new tax would generate between $1.36 million and $3 million annually.

    A notable structural difference from the 2022 version that Dunleavy vetoed, which proposed a 45% wholesale tax, is the shift to a retail-level tax. The change reflects the varying types of e-cigarette products: while some are sold as complete units, others are assembled by retailers from liquids and components, making it very difficult to track down all suppliers for a wholesale-level tax. During the legislative process, an amendment was also added to include synthetic nicotine products within the scope of the tax program.

    The most controversial amendment to the bill allows indoor smoking at designated cigar bars, added during House floor debate. While anti-tobacco organizations had advocated for the bill, they said the cigar amendment undermines smokefree environment protections, with the American Heart Association, the American Cancer Society Cancer Action Network, and the American Lung Association issuing a joint statement that there is no safe level of exposure to secondhand smoke.

    The bill now awaits action by Governor Dunleavy, whose office declined to comment on whether he intends to sign, veto, or allow it to become law without his signature. The Alaska legislation arrives as the Trump administration moves in the opposite direction at the federal level: the FDA on May 5 authorized the use of four types of flavored vapes, including mango and blueberry, and the federal government continues to impose no excise tax on e-cigarette products.

  • Arizona Advances Landmark Vape Bill

    The Arizona Senate passed House Bill 4001 on May 26 with an overwhelming bipartisan vote of 24-2, establishing the state’s first formal regulatory framework for alternative nicotine products including e-cigarettes and vapes. The bill assigns enforcement authority to the Arizona Department of Liquor Licenses and Control, which will also be responsible for inspecting distributor and manufacturing facilities. The measure still requires a return to the House for final approval before heading to Governor Katie Hobbs to sign or veto.

    The bill’s strong Senate majority was largely attributed to a near 40-page amendment added since the House’s earlier passage in March, which further clarified the liquor department’s role and the regulatory obligations of distributors and manufacturers. HB 4001 establishes a tiered penalty system for selling alternative nicotine products to anyone under 21, beginning with a minimum $500 fine and a mandatory educational course, escalating to a $10,000 fine and a one-year license suspension upon a fourth subsequent violation.

    Not all legislators were satisfied with the bill’s scope. Sen. Mitzi Epstein, one of the two dissenting votes, argued that vapes should be regulated identically to tobacco products, including under a unified retail license covering all nicotine products, and expressed concern that the bill leaves open what substances may or may not be included in alternative nicotine products. Rep. Cesar Aguilar had previously argued the $10,000 cap on fines was insufficient and that companies might simply absorb it as a cost of doing business.

    A related fiscal issue surfaced in the debate: First Things First, an early childhood education program funded by a voter-approved 2006 tobacco tax, has seen its annual revenue fall from roughly $165 million to approximately $90 million as consumers have shifted from taxed tobacco products to untaxed vapes. Some Democrats pushed for a vape tax to restore that funding, but Republican leadership characterized any tax provision as a legislative “poison pill” that would have killed the bill entirely, and it was not included.

  • Thailand Considers Generational Nicotine Ban

    Thailand’s Public Health Ministry is studying a Nicotine-Free Generation policy that would permanently prevent children and young people born after a specified year, or within a defined age group when the law takes effect, from ever legally purchasing cigarettes, e-cigarettes, or nicotine products. Public Health Minister Pattana Promphat framed the proposal as part of a broader effort to reduce the long-term healthcare burden associated with smoking, noting that treating patients with smoking-related illnesses strains both the financial resources and medical personnel of the healthcare system.

    The policy would not constitute an immediate ban on cigarette sales or smoking. Instead, the government could set a starting point based on age or year of birth — for example, children aged 10 or 12 when the law takes effect could become the first group permanently barred from buying cigarettes, e-cigarettes, or nicotine products when they reach the current legal purchasing age of 20. The minister stated the measure aims to steadily reduce the number of new smokers in the future and will not affect existing smokers, tobacco factories, or current tobacco farmers.

    The ministry acknowledged the proposal’s wide-ranging commercial implications. Possible support measures for tobacco farmers and those in related agricultural supply chains could include compensation, help switching to alternative crops, educational support for their children, and improved community infrastructure.

    The proposal follows generational tobacco-control measures adopted or passed in other countries. The Maldives implemented a generational tobacco ban in November 2025, prohibiting anyone born on or after January 1, 2007, from legally buying, selling, or using tobacco products. The United Kingdom’s Tobacco and Vapes Act 2026 also prohibits the sale of tobacco products to people born on or after January 1, 2009. The policy remains in early-stage study, with the ministry preparing to gather opinions from all affected sectors before moving forward.

  • Minnesota Communities Push Flavored-Vape Bans as FDA Eases Restrictions

    As the Trump administration signals a softer stance on flavored vapes , anti-tobacco advocates in Minnesota are intensifying efforts to restrict flavored nicotine products at the local level. A coalition called “Love Your Lungs Olmsted” has formed in Olmsted County to push for a ban or restrictions on flavored vape sales. The campaign reflects a decade-long trend: 28 cities and 8 counties across Minnesota have now enacted some form of flavored nicotine restriction, with the Minneapolis suburb of Plymouth being the most recent, approving a ban in April 2026.

    The federal backdrop is driving renewed urgency at the local level. On May 5, the FDA released guidance allowing California-based manufacturer Glas to market fruit-flavored e-cigarettes — including blueberry and mango variants — bringing the total number of FDA-authorized vapes to 45. Reporting from the Wall Street Journal and others indicated the FDA was under significant pressure from President Trump to approve the flavors, and the decision is cited as a factor in the departure of former FDA Commissioner Marty Makary.

    Teen nicotine use, while declining, remains a concern animating the local push. According to the FDA’s National Youth Tobacco Survey, fewer than 10 percent of high school students reported nicotine use in the past 30 days in 2025 — down from a record high of 31 percent in 2019. Public health advocates and school officials argue that flavored products are the primary gateway, with the vast majority of underage users consuming flavored vapes. A chemical health specialist at Rochester Public Schools reported approximately 70 student referrals related to nicotine and THC abuse in the past school year, noting that vaping often precedes broader substance use.

    Not all stakeholders support broad flavor bans as the most effective remedy. Brad Erpelding, president of Northland Vapor, which operates multiple locations in Fargo, North Dakota, argues that restricting sales to age-verified specialty shops — rather than gas stations and convenience stores — would be more targeted and effective. He points to the practical limitation of local bans: when Moorhead, Minnesota enacted its ordinance in 2021, he simply closed that location and opened a new store across the state line in Fargo, which was profitable within the week. The newly FDA-approved Glas vapes include technology pairing the device to the purchaser’s phone to verify the buyer is 21 or older, though anti-tobacco advocates expressed skepticism about the industry’s commitment to enforcement.

  • UK Price Cap Could Raise Billions and Cut Deaths, U. of Bath Study Finds

    Research published by the University of Bath Tobacco Control Research Group and the University of Sheffield’s Addictions Research Group provides the first real-world modelling of a proposed “polluter pays” tobacco levy scheme for the United Kingdom. The study found that the proposed policy could raise between £1 billion and £4.9 billion over five years, depending on the level of price cap and how quickly it is introduced. It could also prevent up to 10,000 hospital admissions and save almost 44,000 years of life over a 20-year period.

    The levy could be delivered by setting a maximum wholesale price that the industry could charge for tobacco products, thereby preventing the industry from using price as a promotional tool. To stop shop prices from falling, the government would raise taxes to offset falls in wholesale prices. The researchers argue this structure would extract revenue from tobacco company profits rather than from consumers or small retailers.

    The University of Sheffield team led a dynamic micro-simulation modelling exercise for England, tracking 250,000 individuals aged 18 to 89 across six scenarios, varying the stringency and speed of tobacco price cap implementation. An immediate hard cap in England could generate £4.9 billion by 2029 and, by 2044, lead to 1,636 fewer deaths, 43,987 fewer years of life lost, and 10,073 fewer hospital admissions.

    Across all six scenarios, researchers observed a consistent pattern: a narrower price range in the market, reduced smoking prevalence, higher tax revenues, and fewer deaths and hospital admissions. While industry revenues declined, consumer expenditure remained largely unchanged. Advocates including Action on Smoking and Health (UK) and Cancer Research UK have championed the idea, and the study’s authors called on UK ministers to consult on introducing the levy as a long-term tool to make the country smokefree within the next 20 years.

  • Artesano del Tobaco Announces Three New Releases

    Artesano del Tobaco has shared updates on three upcoming releases — two slated for 2026 and one targeting 2027. The announcements came via an email to the company’s subscriber list and was reported by Halfwheel.

    The first release is the Viva La Vida Connecticut Lancero, a vitola selected through a poll of the company’s email list, where a Churchill finished first and the Lancero second. Originally announced at the 2026 PCA Convention & Trade Show with a September target and a 38 ring gauge, the latest communication shifts the release window to “summer” and lists the ring gauge at 40. MSRP remains $17 per cigar.

    The second 2026 release is the El Pulpo Corona Gorda, a box-pressed 6½ x 48 described as medium-bodied. The blend features a Mexican San Andrés wrapper over a Nicaraguan binder and Nicaraguan fillers. No pricing has been announced; a fall release is the current target.

    Looking further ahead, the company is teasing a new line called Oro Corojo, developed over four years in collaboration with AJ Fernandez. The blend is described as 80 percent complete, with no details yet disclosed on sizes, blend specifics, or pricing. Artesano del Tobaco is targeting a debut at PCA 2027, scheduled for March 6–8 in Las Vegas. All of the company’s lines are produced by AJ Fernandez in Nicaragua.

  • Israel Climbs European Tobacco-Control Ranking Despite Lagging Taxes

    Israel ranked 10th out of 37 countries in the 2025 Tobacco Control Scale, a European report published by the Smoke Free Partnership, which evaluates tobacco control policies across Europe on metrics including cigarette pricing and taxation, smoking bans in public places, advertising restrictions, health warnings on packaging, smoking cessation programs, age restrictions, and measures to combat illegal trade.

    Despite the improved overall ranking, the report identified a significant weakness in Israel’s pricing policy. The report awarded Israel just 11 points for pricing policy, five fewer than in the previous index. Recent tax increases — including a 2024 order raising taxes on cigarettes, rolling tobacco, heated tobacco products, and e-cigarettes — failed to fully preserve the intended deterrent effect because prices did not rise fast enough compared to broader increases in living costs and consumer purchasing power. Pricing accounts for up to 30 of the index’s 100 points, making it the most heavily weighted category.

    Israel’s broader performance presented a mixed picture. The country received 8 out of 10 points for smoking cessation support, 15 out of 22 for smoking bans in public places, and 11 out of 13 for advertising and marketing restrictions. However, Israel received no points for raising the legal purchasing age above 18 and none for combating illegal tobacco trade.

    On a more positive note, rules signed on June 29, 2025, and set to take effect on August 2, 2026, will require graphic health warnings covering 75% of the main surfaces of all tobacco and nicotine packaging. The report also reflected a broader European trend: for the first time, more countries lost points in the index than gained them, with much of the decline attributed to the erosion of tobacco prices amid inflation and regulatory gaps involving newer smoking products, particularly heated tobacco products. Ireland topped the overall rankings with 80 out of 100 points.

  • Graphic Cigarette Warnings May Nudge Smokers Toward Vaping, Study Finds

    New research from Washington State University, published in the Journal of Business Ethics, finds that graphic anti-smoking warnings on cigarette packaging may produce an unintended consequence: rather than quitting, some smokers are instead drawn toward e-cigarettes. In the absence of similar warnings for e-cigarettes, consumers may get the impression that they are a safe alternative.

    The study, conducted across four separate online experiments, found that smokers exposed to this disparity in health warnings shifted their attention and attitudes toward favorable views of vaping and demonstrated an intention to try e-cigarettes rather than quit smoking. In one study, however, when people were confronted with more balanced health warnings, they were less likely to have positive attitudes or intentions about vaping.

    The U.S. Food and Drug Administration has adopted regulations requiring the use of 11 graphic images in addition to written warnings on cigarette packaging, but implementation has been held up in legal challenges. Warnings on e-cigarette packaging, by contrast, are brief verbal statements that nicotine is addictive.

    The research also highlights a secondary concern beyond current smokers. While the messaging environment affects smokers, it also influences young people who may consider vaping without ever having entertained the idea of smoking. Lead researcher Elizabeth Howlett of WSU’s Carson College of Business concluded that policymakers should consider the messages being sent across the entire market, not just individual products: presenting warnings on both e-cigarettes and conventional cigarettes would make consumers more accurately informed of the actual risks of all tobacco use.

  • Universal Corporation Posts Lower FY2026 Profit on Impairment, Tobacco Write-Downs

    Universal Corporation reported financial results for the fiscal year and fourth quarter ended March 31, 2026, with full-year sales and other operating revenue of $2.92 billion, roughly in line with the prior year’s $2.95 billion. Reported operating income fell 28 percent to $168.5 million, and adjusted operating income declined 13 percent to $211.3 million. Reported diluted earnings per share dropped to $1.30 from $3.78, while adjusted diluted EPS fell to $2.64 from $4.63. The results were weighed down by a $41.1 million non-cash goodwill impairment charge tied to the company’s Universal Ingredients-Shank’s operation and by inventory write-downs of $52 million, primarily for non-wrapper, dark air-cured tobacco, an increase of $32.2 million over the prior year.

    In the Tobacco Operations segment, revenue slipped 1 percent to $2.58 billion on a 2 percent decline in sales volumes and prices, partially offset by higher third-party processing volumes and product mix. Segment operating income fell $28.6 million, reflecting reduced volumes and the dark air-cured write-downs, even as demand for most tobacco styles remained firm and flue-cured and burley tobaccos performed solidly. Uncommitted tobacco inventory stood at 27 percent at year end, above the company’s target range due to delayed customer purchase commitments, but is expected to return to range during fiscal 2027. The Ingredients Operations segment grew revenue 3 percent to $348.1 million on higher volumes, though operating income fell to $3.2 million amid market headwinds, tariff impacts, high fixed costs from expansion at Shank’s, and $8.6 million in inventory write-downs.

    Chairman, President, and CEO Preston D. Wigner characterized the year as solid execution in a markedly different operating environment than the prior year, following an exceptionally strong fiscal 2025 for the tobacco segment. He expressed confidence heading into fiscal 2027, citing the resilience of the tobacco business and efficiency enhancements underway at Shank’s. The company reported total debt down $168.7 million year-over-year, interest expense down $5.6 million, and approximately $1.3 billion of available liquidity at March 31, 2026. Wigner also highlighted sustainability progress, including an advance to an “A” rating in CDP Supplier Engagement and recognition as a CDP Supplier Engagement Leader.