Charlie's Holdings (OTCQB:CHUC) to Launch Highly Disruptive SPREE BAR(TM)

Rhea-AI Summary

Charlie's Holdings, Inc. announces the national launch of SPREE BAR, a flavored disposable product line that aims to disrupt the e-cigarette industry. SPREE BAR features a proprietary nicotine substitute called Metatine and offers adult consumers the same satisfaction as nicotine disposables without nicotine. The product is not subject to FDA requirements and is priced at less than half of industry-leading disposable vapes. Charlie's believes that the introduction of SPREE BAR will give the company a competitive advantage in the vapor and alternative products marketplace.

Positive

• SPREE BAR, with its proprietary nicotine substitute Metatine, aims to disrupt the e-cigarette industry.
• SPREE BAR provides adult consumers with the same satisfaction as nicotine disposables without nicotine.
• SPREE BAR flavor pods have an MSRP that is less than half of industry-leading disposable vapes.

Negative

• None.

Featuring the proprietary Metatine™ Nicotine Substitute, SPREE BAR is not subject to FDA's tobacco registration requirements; Product called an industry game-changer.

• SPREE BAR, with Metatine, is indistinguishable from a conventional disposable vape; SPREE BAR provides adult consumers with the same cerebral satisfaction that typical nicotine disposables provide… but without nicotine.
• As a disposable pod system - with a reusable battery - 6,000-puff SPREE BAR flavor pods have an MSRP that is LESS THAN HALF that of the industry-leading 5,500-puff disposables.
• Because Metatine is not made or derived from tobacco, and because Metatine does not consist of or contain nicotine from any source, SPREE BAR is not subject to FDA Pre-Market Tobacco Application ("PMTA") requirements.
• Doug Christian, former Demand Vape Sales Executive and Master Distributor Program Manager, will manage SPREE BAR's national Master Distributor network.

COSTA MESA, CA / ACCESSWIRE / May 17, 2023 / Charlie's Holdings, Inc. (OTCQB:CHUC) ("Charlie's" or the "Company"), an industry leader in the premium vapor products space, today announced its national launch of SPREE BAR, a flavored disposable product line set to disrupt the entire e-cigarette industry. Featuring nicotine substitute "Metatine" in lieu of tobacco-based and synthetically derived nicotine, SPREE BAR perfectly replicates the sensation of vaping a traditional nicotine disposable - but is not subject to FDA PMTA requirements.

SPREE BAR/Metatine disposable vape devices do not fall within the meaning of "tobacco product," or a "component and part" of a tobacco product subject to the Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act), under which the FDA has authority to regulate the manufacture, distribution, and marketing of tobacco products, so long as: (i) the e-liquid in the device does not contain nicotine from any source or any tobacco-derived ingredients, flavors, or extracts; (ii) it is a non-refillable closed-system, pre-filled device that does not permit access to the e-liquid tank for refilling or other purposes and is intended to be discarded after use and not reused; and (iii) it is not capable of being manipulated or altered in a manner that would allow the product to alter or affect the performance, composition, constituents, or characteristics, or to be used with or for the human consumption of a tobacco product. As such, SPREE BAR/Metatine products are not subject to the FDA tobacco requirements, including, but not limited to, the requirement that all newly deemed tobacco products obtain premarket authorization before entering the U.S. market.

With this important regulatory distinction in mind, the SPREE BAR product line - with Metatine inside - offers adult consumers an exceptionally enjoyable alternative to conventional nicotine disposable products. SPREE BAR provides adult consumers with the same "throat hit" and the cerebral satisfaction that typical nicotine disposables provide… but without nicotine.

Genesis of SPREE BAR

Having invested more than $6MM in what Charlie's believes are some of the strongest FDA Pre-Market Tobacco Application ("PMTAs") in the industry for the Company's e-liquid and electronic nicotine delivery system devices, Charlie's has been frustrated by the facts that (i) more than two years after its applications were submitted, its PMTAs remain in "substantive review" with the FDA, and (ii) no company in the world, to date, has received an FDA marketing order for a flavored disposable vape product.

Accordingly, in late 2022 Charlie's initiated a plan to dramatically shift its business away from tobacco-based and synthetically-derived nicotine products in favor of nicotine substitute products. Though redirecting resources away from the sales of legacy nicotine products in favor of new nicotine substitute technologies has significantly reduced Company revenue in the first half of 2022, Charlie's believes that its breakthroughs with Metatine and with the development of the SPREE BAR product line will give the Company extraordinary long term competitive advantages in the vapor and alternative products marketplace.

"Featuring a disposable Metatine pod system - with a reusable, rechargeable battery that can be used over and over and over again - SPREE BAR is the most eco-friendly and the most COST-COMPETITIVE vape in the entire industry!" explained Ryan Stump, Charlie's Chief Operating Officer. "Initially available in nine popular flavors,SPREE BAR simply tastes great… and is priced at only HALF of what adult consumers pay for nicotine disposables."

"SPREE BAR represents the single largest, most important commercial opportunity that Charlie's has ever identified. The product could, quite literally, disrupt the entire vape industry," explained Henry Sicignano, Charie's President. "Though SPREE BAR/Metatine is NOT made or derived from tobacco or nicotine, SPREE BAR is essentially indistinguishable from conventional disposable vapes… and has tangible competitive advantages compared to competitors' products:

• SPREE BAR flavor pods (with reusable, rechargeable batteries) are not prohibited by the Tobacco Control Act.
• SPREE BAR qualifies as nicotine TAX EXEMPT in a whole host of states.
• Best of all, as a disposable POD system, 6,000-puff SPREE BAR flavor pods have an MSRP that is LESS THAN HALF THE PRICE of the 5,500-puff industry-leading brands."

In order to most efficiently and cost-effectively introduce SPREE BAR this July, Charlie's will employ a Master Distributor network of leading wholesalers across the United States. In this effort, the Company has appointed Doug Christian, former Demand Vape Sales Executive and Master Distributor Program Manager, to serve as National Manager of SPREE BAR's Master Distributor Network. Mr. Christian will spearhead contract negotiations, sales, trade show initiatives, and point of sale promotions for the entire SPREE BAR business unit.

About Charlie's Holdings, Inc.

Charlie's Holdings, Inc. (OTCQB:CHUC) is an industry leader in the premium vapor products space. The Company's products are sold around the world to select distributors, specialty retailers, and third-party online resellers through subsidiary companies Charlie's Chalk Dust, LLC and Don Polly, LLC. Charlie's Chalk Dust, LLC has developed an extensive portfolio of brand styles, flavor profiles, and innovative product formats. Don Polly, LLC creates innovative hemp-derived products and brands.

For additional information, please visit Charlie's corporate website at: Chuc.com and the Company's branded online websites: CharliesChalkDust.com, Pacha.co, and Pinweel.com.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the Company's overall business, existing and anticipated markets and expectations regarding future sales and expenses. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," variations of these terms or the negative of these terms, and similar expressions, are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company's ongoing ability to quote its shares on the OTCQB; whether the Company will meet the requirements to up-list to a national securities exchange in the future; the Company's ability to successfully increase sales and enter new markets; whether the Company's PMTA's will be approved by the FDA, and the FDA's decisions with respect to the Company's future PMTA's; the Company's ability to manufacture and produce products for its customers; the Company's ability to formulate new products; the acceptance of existing and future products; the complexity, expense and time associated with compliance with government rules and regulations affecting nicotine, synthetic nicotine, and products containing cannabidiol; litigation risks from the use of the Company's products; risks of government regulations, including recent regulation of synthetic nicotine; the impact of competitive products; and the Company's ability to maintain and enhance its brand, as well as other risk factors included in the Company's most recent quarterly report on Form 10-Q, annual report on Form 10-K, and other SEC filings. These forward-looking statements are made as of the date of this press release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

Investors Contact:

IR@charliesholdings.com
Phone: 949-570-0691

SOURCE: Charlie's Holdings, Inc.

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https://www.accesswire.com/755516/Charlies-Holdings-OTCQBCHUC-to-Launch-Highly-Disruptive-SPREE-BARTM

FAQ

What is SPREE BAR?

SPREE BAR is a flavored disposable product line that aims to disrupt the e-cigarette industry.

What is the main feature of SPREE BAR?

SPREE BAR features a proprietary nicotine substitute called Metatine.

Is SPREE BAR subject to FDA requirements?

No, SPREE BAR is not subject to FDA requirements.

How does the price of SPREE BAR compare to industry-leading disposable vapes?

SPREE BAR flavor pods have an MSRP that is less than half of industry-leading disposable vapes.