Ispire Malaysia Reaffirms Full Regulatory Compliance and Export-Only Manufacturing Operations

Rhea-AI Summary

Ispire Technology Inc. (NASDAQ: ISPR) has issued a clarification regarding its Malaysian subsidiary's operations, emphasizing full compliance with local regulations. The company confirmed that its Johor facility exclusively manufactures vaporizer hardware for export, with no local distribution or production of nicotine/cannabis-containing products. Key points include: strict export-only manufacturing protocols, production limited to semi-finished vaporizer hardware without liquids or gels, and planned integration of blockchain-based safety features including age-gating and geo-fencing technology. The company has committed over USD 50 million in investment to establish a premier manufacturing hub in Southeast Asia. Ispire also clarified that recent cannabis-related product references pertained only to U.S. operations where such products are legal, not Malaysian activities.

Positive

• Significant USD 50 million investment commitment in Malaysian manufacturing hub
• Implementation of advanced blockchain-based safety features for age verification
• Clear regulatory compliance and export-focused business model
• Strategic positioning as a manufacturing hub in Southeast Asia supporting job creation

Negative

• Recent media scrutiny and public concerns about manufacturing activities
• Clarification needed to address misconceptions about cannabis-related operations
• Limited scope of operations with no local market distribution

Insights

Regulatory Affairs Analyst

Ispire addresses compliance concerns regarding Malaysian operations with detailed clarifications about their export-only manufacturing model.

Ispire Technology's press release addresses regulatory concerns by clarifying that its Malaysian subsidiary operates in full compliance with local laws. This proactive communication appears to be a response to unspecified media reports questioning the company's activities in Malaysia.

The key defensive elements of this statement center around four critical clarifications: (1) the facility produces only for export markets with no local distribution; (2) it manufactures only vaporizer hardware without any nicotine or cannabis content; (3) no medical devices are currently produced at the facility; and (4) products incorporate advanced safety features including age-gating technology.

Particularly noteworthy is the company's explicit distancing of its Malaysian operations from its U.S. cannabis-related business. This careful separation of business activities across jurisdictions demonstrates a sophisticated approach to navigating complex international regulatory frameworks in the vaping industry.

The $50 million investment in Malaysia represents a significant commitment to the region as a manufacturing hub. This suggests the company views regulatory stability in Malaysia as sufficiently secure to justify substantial capital deployment, despite the apparent public scrutiny they're currently managing.

This clarification reduces regulatory uncertainty for investors concerned about potential compliance issues in international operations, though the defensive nature of the release indicates the company is actively managing reputational and regulatory challenges in an industry facing increasing scrutiny worldwide.

LOS ANGELES, June 9, 2025 /PRNewswire/ -- Ispire Technology Inc. ("Ispire" or the "Company") (NASDAQ: ISPR), a trailblazer in vaping technology and precision dosing, announced that its Malaysian subsidiary, Ispire Malaysia Sdn Bhd ("Ispire Malaysia"), reaffirmed its strict compliance with all applicable Malaysian laws and regulations. This clarification follows recent media reports and public interest concerning the Company's manufacturing activities in Malaysia.

Ispire Malaysia confirms that all manufacturing activities at its facility in Johor are exclusively for export purposes and do not involve the production or distribution of any nicotine- or cannabis-containing liquids or gels within Malaysia and for export.

"Ispire Malaysia operates under stringent procedures to ensure all manufacturing is 100% export-oriented," said Michael Wang, Co-CEO of Ispire Technology Inc. "We believe our operations fully comply with Malaysian law, and we are committed to transparency and regulatory cooperation at both federal and state levels."

Key Clarifications:

• No Local Distribution: All products manufactured in Malaysia are not sold, distributed, or marketed in the Malaysian market.

• No Nicotine or Cannabis Content: The facility produces semi-finished vaporizer hardware only, with no liquids or gels involved at any point in production.

• No Medical Devices Manufactured: While the facility is capable of producing certified components, no medical devices are currently manufactured. Any future activity in this sector would follow a comprehensive regulatory review.

• Advanced Safety Features: Ispire products will integrate blockchain-based age-gating and geo-fencing technology, ensuring use is restricted to adults and compliant areas. The company's patented technology has been submitted for review by the U.S. Food and Drug Administration.

The Company also noted that recent commentary referencing cannabis-related products was based on marketing materials related to Ispire's U.S. operations, which operate in jurisdictions where such products are legal. These materials do not reflect the nature of the Company's business conducted in Malaysia.

With an investment target exceeding USD 50 million, Ispire Malaysia has positioned itself as a premier manufacturing hub in Southeast Asia, supporting job creation and technological innovation aligned with Malaysia's industrial development goals.

"We remain committed to upholding the highest standards of compliance, safety, and corporate responsibility," said Wang.

For further information, please visit www.ispiretechnology.com.

About Ispire Technology Inc.
Ispire is engaged in the research and development, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis vaping products. The Company's operating subsidiaries own or license more than 400 patents worldwide. Ispire's branded e-cigarette products are marketed under the Aspire name and are sold worldwide (except in the U.S., People's Republic of China and Russia) primarily through its global distribution network. The Company also engages in original design manufacture (ODM) relationships with e-cigarette brands and retailers worldwide. The Company's cannabis products are marketed under the Ispire brand name primarily on an ODM basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware in the US, Europe and South Africa and it recently commenced marketing activities and customer engagement in Canada and Latin America. For more information, visit www.ispiretechnology.com or follow Ispire on Instagram, LinkedIn, Twitter and YouTube.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act") as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "would," "could," "seek," "intend," "plan," "goal," "project," "estimate," "anticipate," "strategy," "future," "likely" or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: the Company meeting its investment target in Malaysia as currently planned, to a lesser degree, or at all; the Company's continued compliance with applicable laws and regulations in the jurisdictions in which it operates; the approval or rejection of any PMTA submitted by the Company; whether the Company's joint venture with Touch Point Worldwide Inc. d/b/a/ Berify and Chemular Inc. (the "Joint Venture") may be successful in achieving its goals regarding age-gating technology, or otherwise, as currently contemplated, with different terms, or at all; the Joint Venture's ability to innovate in the e-cigarette technology space or develop age gating or age verification technologies for nicotine vaping devices; the Company's business strategies; and the risk and uncertainties described in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Cautionary Note on Forward-Looking Statements" and the additional risk described in Ispire's Annual Report on Form 10-K for the year ended June 30, 2024 and any subsequent filings which Ispire makes with the SEC, including the Ispire's Quarterly Report on Form 10-Q for the period ended March 31, 2025. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by applicable law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

IR Contacts:
For more information, kindly contact:
Investor Relations
Sherry Zheng
718.213.7386
ir@ispiretechnology.com

KCSA Strategic Communications
Phil Carlson
212.896.1233
ispire@kcsa.com

PR Contact:
Ellen Mellody
570.209.2947
ispire@kcsa.com

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SOURCE Ispire Technology Inc.

FAQ

What does Ispire Malaysia manufacture at its Johor facility?

Ispire Malaysia exclusively manufactures semi-finished vaporizer hardware for export purposes, with no production of nicotine or cannabis-containing liquids or gels.

How much is Ispire Technology (ISPR) investing in its Malaysian operations?

Ispire Technology has committed to an investment target exceeding USD 50 million in its Malaysian operations.

Does Ispire Malaysia sell its products in the local Malaysian market?

No, all products manufactured at Ispire Malaysia's facility are strictly for export purposes, with no local distribution or marketing in Malaysia.

What safety features is Ispire (ISPR) implementing in its products?

Ispire is implementing blockchain-based age-gating and geo-fencing technology to ensure product use is restricted to adults and compliant areas.

Are Ispire's Malaysian operations involved in cannabis-related products?

No, cannabis-related products are only part of Ispire's U.S. operations where legal, not its Malaysian operations.