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Category: Business & Finance

  • Chemular and IGEN Join Forces

    Chemular and IGEN Join Forces

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    Chemular and IGEN have formed a strategic alliance to create a new Compliance as a Service (CaaS) platform focused on streamlining the burden of compliance to small-sized and medium-sized companies who need turnkey solutions for Prevent All Cigarette Trafficking (PACT) Act, excise tax reporting and registration services.

    “The time and effort required to stay compliant with federal, state and local laws is increasingly burdensome for small-[sized] to mid-sized companies in regulated categories,” said Jason Carignan, chief commercial officer of Chemular, in a statement. “Except for larger players, most companies don’t have a dedicated compliance officer who can ensure every regulatory detail is addressed so their products can stay on the market—especially in industries like ours, where the rules change rapidly. Chemular, now powered by the IGEN backbone, will be able to significantly scale its turnkey compliance service offering to a growing portfolio of tobacco manufacturers and distributors.”

    In addition to saving time, utilizing the new CaaS platform can provide regulated companies with many other benefits, according to a company press release, including: streamlined remittance and reporting for excise tax, PACT Act, state registrations, and license capture; optimized growth opportunities by allowing employees and leadership to focus on what they do best: developing products and services; avoiding penalties with scaled compliance efforts that easily adapt to new markets with potentially different laws and regulations as the company grows; and reducing risk by monitoring real-time data and evolving regulations while establishing automated procedures that can minimize errors and detect fraud.

    Failure to adhere to compliance guidelines can be costly for companies, leading to large fines and expensive sanctions, regulatory scrutiny and loss of trust in the marketplace. In some cases, noncompliant companies can have their products removed from store shelves, giving space to competitors who were able to better adjust to changing regulations.

    “Compliance can be a long-term strategic advantage, yet most emerging businesses don’t have the resources and expertise to keep up with the growing complexity in regulatory requirements,” said Ryan Padget, president of IGEN. “We’re excited to bring our technology to Chemular, whose clients are regularly faced with regulatory hurdles, like PACT and excise tax reporting. This is just the beginning for our partnership—one that we see as a win for the industry as a whole.”

    Along with this announcement, the Chemular and IGEN teams will be appearing at the tobacco industry’s largest trade show, TPE24, providing resources and education to the show’s retail attendees. Chemular will be hosting the “Fortify Your Future” educational sessions of the show from Jan. 30, 2024, to Jan. 31, 2024, and will be available to speak with attendees at their second-floor meeting room located next to the educational session.

    Companies interested in becoming compliant or streamlining their current processes can visit www.chemular.com for more information.

  • Kaival Announces Reverse Stock Split

    Kaival Announces Reverse Stock Split

    Image: Uuganbayar

    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 Jan. 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,” the company wrote in a press release.

    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.

  • KT&G Implements Early Settlement Payments

    KT&G Implements Early Settlement Payments

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    KT&G is implementing early cash payments of settlement amounts to small and medium-sized partner companies to alleviate their burdens and strengthen cooperative management ahead of the Lunar New Year.

    Among the partner companies that supply raw materials, components and consumables, KT&G is expediting the payment of a total of KRW664 billion to 41 companies more than a month earlier than the regular payment date.

    To ease the financial burden on small and medium-sized partner companies, which face increased capital demands before major holidays such as Lunar New Year and Chuseok each year, KT&G has been executing early payments of settlement amounts. Last Chuseok, they made advance payments totaling KRW917 billion ($497.5 million) to support the liquidity of partner companies.

    Furthermore, KT&G is actively participating in the “Settlement Amount Linked Company” program, which reflects the increase in raw material prices in supplier payments, reducing the burden on small and medium-sized partner companies. This initiative aims to establish a cooperative trading culture and lead the way in the development of a fair market economy.

    In addition to these efforts, KT&G is operating various support systems for mutual growth, such as monthly full cash payments of settlement amounts to alleviate financial difficulties for partner companies.

    “Amidst ongoing global inflation and interest rate hikes, we decided to expedite the payment of settlement amounts to partner companies facing high capital demand ahead of the Lunar New Year,” said a KT&G representative in a statement. “We will continue to explore various support measures to realize the values of mutual growth with partners and enhance sustainability across the entire value chain.”

  • PMI Clarifies Zyn Marketing Practices

    PMI Clarifies Zyn Marketing Practices

    Philip Morris Global Chief Communications Officer Moira Gilchrist has clarified in a video presentation PMI’s marketing practices and facts relating to Zyn nicotine pouches, which recently came under fire by Senate Majority Leader Chuck Schumer.

    Schumer asked the U.S. Food and Drug Administration and the Federal Trade Commission to take action on PMI’s marketing practices and the health effects of Zyn, calling the product the next “trend in addiction for teens.”

  • 22nd Adjourns Meeting for Shares Proposal

    22nd Adjourns Meeting for Shares Proposal

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    22nd Century Group conducted its Jan. 24, 2024, special meeting of stockholders and adjourned the meeting solely with respect to Proposal 2 set forth in its Definitive Proxy Statement previously filed with the Securities and Exchange Commission. Proposal 2 is a proposal to increase the number of authorized number of shares of common stock. All other proposals were passed at the special meeting with strong support from stockholders.

    “We sincerely appreciate the support of our stockholders on these important items as we work to swiftly effect a turnaround of the business,” said Larry Firestone, chairman and CEO of 22nd Century, in a statement. “In the seven weeks since I joined the company, we have fully focused the business on our tobacco operations, implemented aggressive operating cost reductions and extended our balance sheet runway. We are also actively working to improve our tobacco business margins and increase the returns from those assets as we work to make this company self-sufficient, including efforts to increase the channels and channel support for VLN sales.

    “While I am pleased with the progress on these and other initiatives we have underway, Proposal 2 is still critically important to ensuring that the company can address any strategic needs as we bridge to self-sustaining operations as quickly as possible. We hope that the adjournment will enable additional shareholders to vote for this proposal, or those who may have voted against to reverse their vote and support our efforts to complete the turnaround process.”

    The company has adjourned the special meeting solely with respect to Proposal 2 to provide its stockholders additional time to vote on Proposal 2. The special meeting will resume with respect to Proposal 2 at 11:00 a.m. Eastern Time on Feb. 15, 2024. The reconvened meeting will be held at 11988 El Camino Real, Suite 400, San Diego, California, 92130. The record date for determining stockholders eligible to vote at the special meeting will remain the same. To date, more than 48 percent of all shares outstanding as of the record date have voted in favor of the proposal.

    Stockholders as of close of business on Dec. 6, 2023, the record date for the special meeting, who have not yet voted are encouraged to vote over the internet at http://www.proxyvote.com/.

  • Parkside Restructures Management

    Parkside Restructures Management

    Image: Parkside

    Parkside is restructuring its management team.

    The company has appointed Robert Adamson as chairman and Paula Birch as managing director. The flexible packaging innovator’s Asian operations will now be headed by Paul Vaughan, who has been made general manager of Parkside Asia, while Joshua Swann joins the board as technical director to lead on NPD and innovation.

    Laura Haggerty will assume the role of BAT account director and head of client services, and Julia O’Loughlin will become group marketing manager.

    Staci Bye has returned to a customer-facing role as sales account manager while Jonathan Steele is beginning a two-year secondment to the company’s Asian site to bolster its technical capabilities and support its growing business in the region.

    “Thanks to the hard work and passion of the entire Parkside team, we bucked industry trends and enjoyed a hugely successful 2023,” said Birch in a statement. “Our business has grown significantly in recent years as demand for sustainable flexible packaging innovations continues to increase, and it’s important that our business capacity and capabilities grow along with it.

    “This restructure will help us harness the momentum of our recent success so we can continue to deliver market-leading innovations and the best possible service to our customers across the world.”

  • Reynolds American Named Top Employer

    Reynolds American Named Top Employer

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    Reynolds American Inc. has been named a Top Employer for 2024 in the United States by the Top Employers Institute for the second consecutive year. Being certified as a Top Employer showcases an organization’s dedication to a better world of work and exhibits this through excellent human resources (HR) policies and people practices.

    Reynolds is one of 44 organizations nationwide to receive this recognition. The Top Employers Institute program certifies organizations based on the participation and results of their HR Best Practices Survey. This survey covers six HR domains consisting of 20 topics, including people strategy, work environment, talent acquisition, learning, diversity, equity and inclusion, well-being and more.

    “Our employees are leading the transformation of an entire industry and supporting them professionally and personally throughout their career with us is critical to our organization’s success,” said Borgia Walker, senior vice president of human resources and inclusion, in a statement. “With a unique workforce that represents many professions from manufacturing to scientists and corporate roles to a nationwide salesforce, our employees have different needs to excel, and this Top Employer certification underscores the efforts we make to help our employees thrive.”

    Some of Reynolds’ highest marks in the Top Employer assessment were in the areas of career growth and development, learning opportunities available for employees, rewards and recognition and employee well-being.

    Top Employers Institute CEO David Plink says, “Exceptional times bring out the best in people and organizations. And we have witnessed this in our Top Employers Certification Program this year: exceptional performance from the certified Top Employers 2024. These employers have always shown that they care for the development and well-being of their people. By doing so, they collectively enrich the world of work. We are proud to announce and celebrate this year’s group of leading people-oriented employers: the Top Employers 2024.”

  • JTI Awarded Global Top Employer

    JTI Awarded Global Top Employer

    Image: Nuthawut

    Japan Tobacco International was certified Global Top Employer for the 10th year in a row.

    “This recognition acknowledges that our people are at the heart of everything we do and shows the progress we continue to make in improving our environment, caring about the well-being of our employees as well as our focus on diversity, equity and inclusion. Being awarded Top Employer 10 years in a row demonstrates to our future employees that JTI is a great place to work. This certification is a key component in attracting and retaining top talent,” said Guergana Andreeva, senior vice president of people and culture, in a statement.

    JTI is one of 17 companies to be honored with the Global Top Employer award. Eleven countries where JTI has a presence were ranked No. 1. Globally, JTI ensures that its employees and their families have best-in-class support thanks to its global family leave policy aiming to provide equal opportunities for both parents to spend time with their newborn, according to JTI.

    JTI has also implemented new flexible working measures, which allow employees to choose how, when and where they work, and with the help of the employee resource groups, the company provides great support to various underrepresented groups, including, but not limited to, supporting females in leadership roles and LGBTQ+ communities.

    “While we are very pleased to have received the Global Top Employer certification for the 10th consecutive year, we are even more delighted that the various initiatives we have put in place in our locations across the world have helped improve our employees’ well-being, job satisfaction and opportunities to continue to develop their careers. JTI was awarded the Top Employer certification thanks to its 46,000 employees of 119 different nationalities who set goals and commit to achieving them,” Andreeva added.

  • Egypt: Philip Morris Cleans Up Nile River

    Egypt: Philip Morris Cleans Up Nile River

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    Philip Morris Misr organized a campaign to clean up the Nile River as part of its social responsibility initiatives, according to Daily News Egypt. The campaign aimed to raise awareness of the importance of protecting the Nile River from pollution and enhancing environmental sustainability.

    “Our corporate strategy is based on implementing and consolidating sustainability standards,” said Ali N. Karaman, managing director of Philip Morris Egypt and Levant. “We are committed to fulfilling our social responsibility by engaging in activities that serve the needs and requirements of the local communities. Philip Morris Misr is keen to organize annual events that promote environmental awareness.”

    The campaign included various activities to collect waste from the Nile River and educate people on proper waste disposal methods, aiming to highlight negative impacts of water pollution.

    Philip Morris has strengthened its commitment to environmental sustainability recently, with plans to make plants carbon neutral by 2030. Philip Morris has made steps toward this goal, installing wind turbines, solar panels and electric vehicle charging stations at its facilities and performing awareness activities on proper disposal of cigarettes.

  • Indonesia: Bentoel Delisted

    Indonesia: Bentoel Delisted

    Image: Yazid Nasuha

    Bentoel International Investama, BAT’s Indonesian unit, has officially been delisted from the Indonesia Stock Exchange (IDX), according to the Jakarta Globe. Bentoel has been listed on the IDX since 1990.

    “IDX approves the removal of the company’s securities listing on the stock exchange, effective on Tuesday,” the IDX announced. “If the company wishes to re-list its shares on the IDX, the process can be carried out under applicable regulations.”

    Bentoel Group has become the fourth-largest tobacco company in Indonesia, following Sampoerna, Gudang Garam and Djarum. The company produced local brands such as Bentoel Biru, Tali Jagat, Bintang Buana, Sejati, Neo Mild and Uno Mild.

    In the first six months of 2023, Bentoel’s revenues were IDR4.31 trillion ($275.5 million), a 27.37 percent increase from the previous year. Net profit in the first semester of 2023 was IDR35.49 billion, up 121.83 percent from the previous year period.