R.J. Reynolds Buys 12 PMTA-Pending Synthetic Nicotine Disposable E-Cigarette Products for $5 Million

Apr.22
R.J. Reynolds Buys 12 PMTA-Pending Synthetic Nicotine Disposable E-Cigarette Products for $5 Million
R.J. Reynolds Vapor Company, a division of British American Tobacco (BAT), has acquired 12 PACHA synthetic nicotine disposable e-cigarette products and related assets.

Key Highlights:

● Acquirer: R.J. Reynolds Vapor Company (a subsidiary of British American Tobacco)

● Seller: Charlie’s Holdings, Inc.

● Transaction Date: April 16, 2025 (disclosed via SEC Form 8-K on April 17)

● Assets Sold: In 2022, 12 PACHA-brand synthetic nicotine products were submitted to the PMTA, all of which are disposable e-cigarettes

● Deal Value: $5 million upfront payment + up to $4.2 million in contingent earn-out

● Regulatory Status: Products submitted under FDA’s PMTA framework; approval status not disclosed

● Strategic Implication: BAT strengthens compliant product portfolio; Charlie’s monetizes regulatory-stage assets

● Market Response: CHUC stock surged 33.33% on April 17 following the announcement


[2Firsts] On April 17, 2025, Charlie’s Holdings, Inc. filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC), announcing that it had entered into and completed an asset purchase agreement with R.J. Reynolds Vapor Company, a subsidiary of British American Tobacco (BAT), on April 16.

 

The deal involves the sale of 12 synthetic nicotine disposable e-cigarette products under the PACHA brand, all of which were submitted to the U.S. Food and Drug Administration (FDA) for PMTA review in 2022. The total consideration includes a $5 million upfront cash payment, plus a one-time contingent earn-out of up to $4.2 million, based on the volume of sales generated during the first 12 months of commercialization.

 

The agreement contains standard representations, warranties, and indemnities, and is filed as Exhibit 10.1 to the Form 8-K.

 

Following the announcement, Charlie’s Holdings (ticker: CHUC) surged 33.33% on April 17, closing at $0.10 per share—its highest closing price in nearly two months. The market response underscores strong investor confidence in the transaction and the monetization potential of Charlie’s regulatory-stage assets.

 

The 12 products sold are synthetic nicotine offerings currently under PMTA review, and it remains unclear whether any have received Marketing Granted Orders (MGOs) from the FDA. For BAT, the acquisition marks another step in expanding its portfolio of regulatory-stage products. For Charlie’s, it may signal a broader effort to streamline its operations or reallocate capital.

 

With intensifying regulation across the U.S. nicotine market, PMTA-submitted products are increasingly seen as valuable strategic assets. More acquisitions of this nature are likely to follow.

 

Altria CFO, EVP to Retire in July; Company Outlines 2025 Plan Pending Shareholder Approval
Altria CFO, EVP to Retire in July; Company Outlines 2025 Plan Pending Shareholder Approval
Altria Group has announced that Executive Vice President and Chief Financial Officer Steven D'Ambrosia will retire on July 31, 2025, and will be succeeded by Katie F. Patterson, currently Senior Director of External Reporting, effective August 1. In Q1 2025, the company reported a 5.7% YoY decline in revenue and a 49.4% drop in net income.
May.20 by 2FIRSTS.ai
2Firsts Interviews Harm Reduction Policy Expert Jeannie Cameron: WHO’s Rejection of Harm Reduction Is Undermining Global Tobacco Control
2Firsts Interviews Harm Reduction Policy Expert Jeannie Cameron: WHO’s Rejection of Harm Reduction Is Undermining Global Tobacco Control
As part of its GFN media partnership, 2Firsts spoke with FCTC expert Jeannie Cameron, who warns that the WHO’s rejection of harm reduction is leading global tobacco control efforts off course.
Jun.18
Ispire Reports FY2025 Q3 Revenue Down 12.7% to $26.2M; Secures Temporary Nicotine Production License in Malaysia
Ispire Reports FY2025 Q3 Revenue Down 12.7% to $26.2M; Secures Temporary Nicotine Production License in Malaysia
Ispire’s FY2025 Q3 revenue fell 12.7% to $26.2 million, with net loss widening to $10.9 million. The company is shifting manufacturing to Malaysia, aiming to cut costs by $8 million annually, and has obtained a temporary nicotine production license. It also filed a blockchain-based PMTA component with the FDA and launched the Sprout™ cannabis device with Raw Garden to grow its presence in emerging markets.
May.13 by 2FIRSTS.ai
JTI Launches Limited Edition Ploom X Advanced in South Korea, Priced at Around $50
JTI Launches Limited Edition Ploom X Advanced in South Korea, Priced at Around $50
On July 1, JTI Korea launched the Ploom X Advanced Limited Edition Ora Ito Red, a red heat-not-burn device developed in collaboration with designer Ora Ito. The standalone device is priced at approximately $50.
Jul.01 by 2FIRSTS.ai
LOST MARY Launches New Brand ONIQUE in Russia with Two Debut E-Cigarette Products
LOST MARY Launches New Brand ONIQUE in Russia with Two Debut E-Cigarette Products
LOST MARY has officially launched its new e-cigarette brand ONIQUE in the Russian market, debuting with two models: ONIQUE 10000 and ONIQUE 20000.
May.27 by 2FIRSTS.ai
BBC Undercover Investigation: Nearly Half of Shops Still Selling Disposable Vapes Two Weeks After Ban
BBC Undercover Investigation: Nearly Half of Shops Still Selling Disposable Vapes Two Weeks After Ban
The UK banned disposable vapes from June 1, but a BBC undercover report found nearly half of 21 shops in Yorkshire still selling them. Some retailers knowingly continued sales to clear stock, despite the ban.
Jun.12 by 2FIRSTS.ai