Category: News This Week

Supreme Shares Soar After Elf Bar Agreement

Image: Tobacco Reporter archive
Shares in the U.K. vaping company Supreme rose 5 percent after the company announced it is now the “master distributor” for two leading U.K. vaping brands—Elf Bar and Lost Mary, reports City AM.
The London-listed company expects the partnership to generate revenues of £25 million ($36.06 million) to £30 million over the next fiscal year ending March 2024.
The news comes amid a political crackdown on vape products—especially for those underage.
Sandy Chadha, CEO of Supreme, said the agreement will allow the group to “fully leverage its unique technical, regulatory, compliance and quality assurance capabilities within the vaping sector.”
“We have seen a hugely positive response from both established and new retailers who view Supreme as an ideal partner to supply these products across the U.K.,” Chadha added.
Supreme says its strong market presence, distribution network and compliance capabilities provide Elf Bar and Lost Mary with a “ready-made blueprint” distribution strategy.
The company will report sales of the newly added brands separately from its existing vaping category, which includes Supreme’s proprietary 88Vape brand.
Supreme nearly doubled revenues to £76.1 million this year, while posting an £8.6 million increase in gross profit.
July 7, 2023
WHO Releases Provisional Agendas

Photo: Alexey Novikov
The World Health Organization has released its provisional agendas for the 10th session of the Conference of the Parties (COP10) to the Framework Convention on Tobacco Control and the third session of the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products (MOP3), the FCTC announced on its website.
Held in Panama, COP10 will take place Nov. 20-25 and MOP3 will take place Nov. 27-30.
The provisional COP10 agenda is here and the provisional MOP3 agenda is here. Participants in COP10 can register here and participants in MOP3 can register here.
Guidance on registration is also available on the FCTC website.
The FCTC is the first international treaty negotiated under the auspices of the WHO. It was adopted by the World Health Assembly on May 21, 2003, and entered into force on Feb. 27, 2005.
The Protocol to Eliminate Illicit Trade in Tobacco Products is the first protocol to the FCTC, and a new international treaty in its own right. The Protocol builds upon and complements Article 15 of the FCTC, which addresses means of countering illicit trade in tobacco products. It was adopted by consensus on Nov. 12, 2012, at the fifth session of the Conference of the Parties to the FCTC in Seoul and entered into force on Sept. 25, 2018. The Protocol currently includes 67 Parties.
July 6, 2023
Plant-Based Biologics Market Thriving

Photo: Kentucky Bioprocessing
The global plant-based biologics market is anticipated to generate a revenue of $182.9 million by 2031, expanding a compound annual growth rate of 4.8 percent from 2022, according to a new report published by Research Dive.
Plant-based biologics are medical products that are produced by utilizing bioengineered plants to create complex molecules like proteins, antibodies, and vaccines. These biologics are produced more sustainably and economically than conventional animal cell-based biologics. The use of plant-based biologics may have substantial effects on the pharmaceutical industry by lowering the costs of medicine development and production and addressing ethical concerns about the use of animals in medical research.
Tobacco continues to be the most widely used plant for the manufacture of pharmaceuticals. Due to their high biomass yield, ease of genetic modification and quick growth rate, tobacco plants are well-suited for biologics production. Several companies, including Medicago, Baiya Phytopharm and Kentucky Bioprocessing have used tobacco to developed vaccines and other medical treatments.
According to Research Dive, North America dominated the global plant-based biologics market in 2021. Not only does the continent offer a sizable market, but it also offers a supportive regulatory environment and strong research infrastructure.
Tobacco Reporter explored tobacco’s potential as a “green bioreactor” in its April 2022 issue.
July 6, 2023
Investors Buy 22nd Shares ‘Above Market’

Image: Tobacco Reporter archive
22nd Century Group has entered into definitive agreements with certain investors for the purchase and sale of 778,634 shares of common stock and warrants at a price of $3.80 per share in a registered direct offering priced above market.
The company expects the offering to generate gross proceeds of $3 million before deducting the placement agent’s fees and other offering expenses payable by the company. 22nd Century intends to use the net proceeds from this offering for the continued commercial expansion of its VLN reduced-nicotine content tobacco cigarettes in additional markets, working capital related to its commercial activities and general corporate purposes.
“We are encouraged by the confidence investors have demonstrated in our path forward through the participation in our latest offering of securities, which corresponds with the inflection point we are experiencing in critical aspects of the business,” said CEO James A. Mish in a statement. “In turn, we are pleased to have strengthened our capital position, deliver[ed] continued operational momentum and taken successful steps toward regaining compliance with Nasdaq listing standards.”
The Special Equities Group, a division of Dawson James Securities, acted as the sole placement agent for this transaction.
As part of the transaction, the company agreed to issue to the investors warrants to purchase up to 1,557,268 shares of common stock. The warrants have an exercise price of $3.80 per share and are exercisable six months from the date of issuance. The closing of the offering is expected to occur on or about July 10, 2023, subject to the satisfaction of customary closing conditions.
July 6, 2023
Istanbul Bans Public Shisha Smoking

Image: puhhha | Adobe Stock
Istanbul has banned shisha smoking in public places in order to mitigate risks of forest fires and other potential hazards, reports Xinhua News.
“Smoking shisha will be strictly prohibited in various locations, including beaches, forests, recreational areas and parks throughout Istanbul,” wrote Governor Davut Gul on Twitter. “However, it is important to note that licensed shisha lounges operating outside of these designated areas are not affected by this ban.”
July 6, 2023
Activists Dispute Gateway Findings

Photo: Wlodzimierz
Recent claims by Otago University in New Zealand that vaping is a gateway to smoking have been disputed by leading global harm reduction experts Roberto Sussman, Konstantinos Farsalinos and Gerry Stimson. These experts have highlighted the importance of harm reduction strategies in reducing the negative health impacts of smoking.
Published on June 28 in Drug and Alcohol Review, the Otago University study analyzed data related to New Zealanders’ smoking and vaping status from the 2018-2020 New Zealand Attitudes and Values survey.
Unlike other studies, Post-graduate student Andre Mason and associate professor Damian Scarf found no consistent evidence that vaping acted as a cessation pathway from smoking. Mason said vaping appeared to be another smoking-related behavior, rather than a substitute for smoking that primarily helped people quit.
“We found that there was an equal likelihood of vapers transitioning to smoking as smokers were to vapers,” Mason told Radio New Zealand.
Tobacco harm reduction advocates questioned the findings. According to Sussman, there is no evidence that vaping is a gateway to smoking. “In fact, studies have shown that vaping can be an effective tool for smoking cessation,” he said. “The vast majority of vapers are former smokers who have successfully quit smoking thanks to vaping,” added Farsalinos
Gerry Stimson, a public health expert and advocate for harm reduction, emphasizes that harm reduction strategies like vaping are essential in reducing the negative health impacts of smoking. “We need to focus on providing smokers with safer alternatives to cigarettes, rather than demonizing harm reduction strategies like vaping,” he noted.
Nancy Loucas, executive coordinator of the Coalition of Asia Pacific Tobacco Harm Reduction Advocates, who compiled these comments, also disputed the gateway claim by Otago University.
Lous cited recent data, which suggest the smoking incidence rates in New Zealand have fallen significantly over the past five to 10 years. The current smoking rate of New Zealand adults is 8 percent in 2021/2022, which has decreased from 16.5 percent in 2015 and from 27 percent in both men and women in 1993. Loucas insists that vaping has played a significant role in the reduction of smoking rates in New Zealand over the past five to 10 years. According to research published in the NZ Medical Journal, the current vaping rate in New Zealand is 8.3 percent of adults being categorized as daily e-cigarette users, up from 6.2 percent in the previous year.
“We need to focus on harm reduction strategies that work, rather than relying on outdated and inaccurate claims about vaping being a gateway to smoking,” said Loucas. “The evidence is clear: vaping can be an effective tool for smoking cessation and harm reduction.
The government of New Zealand has given NZD1.4 million ($860,411) to a large trial to help New Zealanders quit vaping. Over six months, more than 1,000 participants will test whether cytisine—a medicine that partially blocks the effects of nicotine on the brain—is more effective than a tapered reduction in nicotine, when accompanied with behavioral support.
July 6, 2023
Seoul Mulls Higher Fines for Cigarette Litter

Photo: sayan
The Seoul metropolitan government is considering raising fines for cigarette butt litter from KRW50,000 ($38) to as much as KRW200,000, according to Korea JoonAng Daily.
Currently, the city government fines KRW50,000 regardless of the number of littering violations. The proposed new fine would increase based on number of violations: KRW100,000 for a first violation, KRW150,000 for a second violation and KRW200,000 for a third violation.
Cigarette filters have been noted as one of the major causes of flooding in the area as the litter blocks the road drainage systems. The flood level doubles if two-thirds of the height of the drainage gets flooded, according to the National Disaster Management Research Institute. If the drainage is completely submerged, the flood level rises six-fold and flooding occurs three times more quickly.
“Drainages at high-risk areas, including those that have been flooded during the monsoon season, should be prioritized in being taken care of,” said Lee Young-joo, professor of fire prevention science at the University of Seoul. “Measures to offer incentives to those who voluntarily clean up road drainages should also be drawn up.”
Increased fines are also expected to help prevent fires due to smoking. Last year, 6,289 fires in the city were due to smoking, according to the Seoul Metropolitan Fire and Disaster Headquarters.
The city government will propose the fine increase to the Environment Ministry.
July 6, 2023
Shisha Producer Calls Banks to Pitch for IPO

Image: Дмитрий Скорина | Adobe Stock
Advanced Inhalation Rituals (AIR), a Dubai-based producer of shisha molasses, has invited banks to pitch for roles in its planned initial public offering (IPO), which is expected next year, according to anonymous sources with knowledge of the matter, which is not public, reports Reuters.
AIR has not decided on a listing venue yet, but Abu Dhabi and Dubai are among the options.
Majority owner of AIR, Britain’s Kingsway Capital, is looking to follow a dual-track process where a seller pursues a sale and an IPO simultaneously. Rothschild and Co. is acting as financial advisor to AIR.
Last month, Kingsway Capital started meetings with tobacco firms such as BAT and Japan Tobacco.
July 5, 2023
22nd Announces Reverse Stock Split

Image: Travis | Adobe Stock
22nd Century Group will conduct a reverse stock split of its outstanding shares of common stock, par value $0.00001 per share, at a ratio of 1-for-15 effective as of 12:00 a.m. Eastern Time on July 5, 2023. The reverse stock split is intended for the company to regain compliance with the minimum bid price requirement of $1 per share of common stock for continued listing on Nasdaq.
“As a transformative plant science company, being listed on the Nasdaq Stock Market places 22nd Century among the top innovation-driven companies of the world. The board decided to take action now to resolve our compliance with the Nasdaq listing standards, providing investors with greater assurance around this important asset even as we continue to advance our mission focused on plant biotechnology and health improvement,” said Nora Sullivan, chair of the board, in a statement.
“As [we] move into the second half of 2023, we are advancing the rollout of our VLN products in the three largest state markets as we further expand our commercial footprint,” said James A. Mish, CEO. “We also expect to benefit from our new extraction capabilities and the return of distillate production in our hemp cannabis business, plus expansion in our new multi-year vertically integrated license and distribution agreements with two major consumer brands. Combined, we are tracking to our full-year outlook of a record $105 [million] to $110 million in sales.”
22nd Century common stock will begin trading on a reverse stock split-adjusted basis at the opening of the Nasdaq Capital Market on Wednesday, July 5, 2023. Following the reverse stock split, the common stock will continue to trade on Nasdaq under the symbol “XXII” with the new CUSIP number, 90137F202.
In connection with the reverse split, the company will reduce its authorized number of shares of common stock at that same ratio as the reverse split, resulting in 33,333,334 authorized shares of common stock (from 500,000,000 authorized shares). No fractional shares will be issued in connection with the reverse stock split and all such fractional interests will be rounded up to the nearest whole number of shares of common stock. In addition, the reverse stock split will apply to the common stock issuable upon the exercise of the company’s other outstanding securities, with proportionate adjustments to be made to the exercise prices and number of derivates securities, and under the company’s equity incentive plans.
The reverse stock split will consolidate the number of issued and outstanding shares of the company’s common stock to approximately 15.9 million.
July 5, 2023
JT Launches New Infused Tobacco Device

Photo: JT
Japan Tobacco is launching a new brand named “With” and a new device named “With 2” for infused tobacco capsules in Japan this summer, the company announced on its website.
The company will discontinue its Ploom TECH, Ploom TECH + and Ploom TECH + With infused tobacco capsule devices, which are only in Japan. They will be available until stocks are sold out.
Ploom X, which is a device for heated tobacco sticks, is unaffected by this announcement and will continue to be sold and rolled out in a number of markets including Japan.
JT says it remains committed to investing in reduced-risk products. The company competes in the heated-tobacco segment with its Ploom brand and participates in the e-cigarette market with its Logic brand.

The discontinued devices
July 5, 2023