Tag: Charlie's Holdings

Nicotine Alternatives Under Scrutiny

Photo: Alexey Stiop
Nicotine alternatives, such as 6-methyl nicotine, may be more potent and addictive than nicotine itself, reports Reuters, citing U.S. Food and Drug Administration scientists and independent researchers.
Traditional nicotine found in many vapes and pouches is extracted from tobacco leaves; 6-methyl nicotine, in contrast, is made in a laboratory.
While chemically similar to nicotine, the synthetic substances are not subject to U.S. tobacco and vaping regulations, allowing manufacturers to sell vapes with nicotine analogues without seeking FDA authorization.
Tobacco and vape companies have criticized that the FDA product authorization process is costly and time-consuming. Only a handful of applications have been approved.
In response to questions from Reuters, the FDA said it was reviewing the available data on nicotine alternatives to inform potential actions.
Three academic researchers told the news agency that current studies of 6-methyl nicotine are too limited to draw definite conclusions on the health impact or to what degree it is addictive.
The limitations of existing research, the researchers said, included that some papers were industry funded while others focused on the short-term impact on animals or cells and were insufficient to understand 6-methyl nicotine’s effects on human bodies.
The FDA has yet to approve any flavored vape using traditional nicotine for sale in the United States, saying companies have not been able to show that the health benefits they offer to smokers outweigh the known risks to young people, who may be more attracted by the flavors.
The Spree Bar vaporizer, which uses a 6-methyl nicotine solution branded as “Metatine,” notes on its website that Metatine “may have a toxicity profile similar to nicotine.”
Sven Jordt, a professor at Duke University who has authored papers on products like Spree Bar, said 6-methyl nicotine could me more addictive and toxic than its traditional cousin.
“Do we want to have such a chemical as a recreational product, available to anyone?” he asked. “That’s really questionable.”
May 29, 2024
Charlie’s Holdings ‘Turns the Corner’ in 2021

Photo: Charlie’s Holdings
Charlie’s Holdings reported increased revenue, gross profit, gross margin and cash balance in the first quarter of 2021.
Revenue decreased 1 percent year-over-year to $4.36 million but increased 3 percent from the fourth quarter of 2020. Gross profit decreased 1 percent year-over-year to $2.42 million but increased by more than 14 percent from the 2020 fourth quarter. Gross margin remained at 55 percent year-over-year and expanded 5 percent from the fourth quarter of 2020.
“Though 2020 was a difficult year for our entire industry, Charlie’s financial performance turned the corner in the first quarter of 2021,” said Charlie’s CEO Brandon Stump in a statement. “Incorporating a right-sized cost structure, strengthened balance sheet and launch of Pachamama Disposables, the company achieved growth in both revenue and gross margin versus the last quarter of 2020. Most importantly, we feel confident that Charlie’s is now positioned for accelerated growth going forward.”
On April 1, 2021, Charlie’s hired Henry Sicignano III as president to spearhead business strategy and capital markets initiatives. Sicignano previously served as president and CEO of 22nd Century Group.
Sicignano will work closely with Charlie’s CEO Brandon Stump to develop and execute business strategy in the rapidly changing electronic nicotine-delivery system marketplace.
So confident are we in Charlie’s future, my brother Ryan and I invested $3 million in Charlie’s common stock last quarter.
Brandon Stump, CEO, Charlie’s Holdings
“We are very pleased about the recent addition of Henry Sicignano as our president,” said Stump. “His past successes—in both his initiatives to provide adult smokers with alternatives to traditional combustible cigarettes and his experience growing and uplisting a public company—will prove invaluable to Charlie’s.
“So confident are we in Charlie’s future, my brother Ryan and I invested $3 million in Charlie’s common stock last quarter. We believe that Charlie’s is well on its way to emerging as America’s No. 1 premium nicotine-based e-cigarette company.”
May 24, 2021
Charlie’s Pachamama Sell Out in 21 Days

Brandon Stump
(Photo: Charlie’s Holdings)
Charlie’s Holdings has sold its entire initial stock of Pachamama Disposables e-cigarettes in fewer than 21 days, making Pachamama the fastest-selling new product in the company’s history, according to a press release.
“It is estimated that more than 20 percent of the world’s population consumes nicotine in some format,” said Brandon Stump, CEO of Charlie’s Holdings. “We believe that our new technologies and products can provide adult consumers with a better, more responsible and therefore more enjoyable means of experiencing nicotine.
“Now that we have launched Pachamama Disposables in the United States, later this year, our distribution will expand into more than 75 international markets, where we expect to introduce millions of adult consumers to the extraordinary Pachamama sensory experience. We are very excited about what this launch—and the new $600 million market opportunity—will mean for our customers and our company.”

We are very excited about what this launch—and the new $600 million market opportunity—will mean for our customers and our company.
Brandon Stump, CEO, Charlie’s Holdings
Earlier this month, Charlie’s Holdings raised $3 million through the private sale of common stock to the company’s founders, Brandon Stump and Chief Operating Officer Ryan Stump. The company intends to use the proceeds from the offering to drive substantial future growth, facilitate new product launches, increase working capital, retire outstanding debt and for other general corporate purposes.
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 FDA approval of Charlie Holdings’ premarket tobacco product application.
April 22, 2021
Founders Invest in Charlie’s Holdings

Photo: Tobacco Reporter archive
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.”
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.
Jeff Fox, member of Charlie’s board of directors
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.”
April 5, 2021