You guessed it …R. J. Reynolds Vapor Company.
But CHUC has 678 PMTAs left… with an imputed value (without FDA approval) **of over $600M**.
Here’s why the buyout price could be **MUCH MUCH HIGHER**.
CHUC is expected to launch America's **first age-gated flavored disposables** in Q3.
Most people don't know this, but **Big Tobacco doesn’t have a flavored vape on the market**…. the switch from cigarettes to vapes is happening, and they are being left out..
With the launch of these first 6-10 vapes (estimated), the company would have **an immediate monopoly** on **legal** flavored vapes in the US.
Do you see Big Tobacco letting a $75M company do that?... when they spend BILLIONS on new products?...and have BILLIONS in cash on their balance sheet.
In 2023, the tobacco company **Altria,** purchased **NJOY** for **$2.75 billion in cash**. The agreement also included up to **$500 million in extra payments** if specific products were approved by the FDA.
Not only that, but OTHER things that make CHUC attractive to Big Tobacco:
* SBX is their fast-growing flavored **nicotine-like vape line that doesn't require FDA review**…quickly gaining traction in many states.
* Their **US manufacturing facility**.. that allows them to qualify in states that only sell Made in USA vapes
* The **only tobacco-flavored vape to be sold in California**…and just landed the 2nd largest C Store
* Upcoming 75K puff vape launch
* 678 PMTAs…isn’t that enough?
Two things to watch.
The Fifth Circuit Court is expected to issue its decision in July/Aug on whether the FDA “overstepped its boundaries” in its flavored vape decisions.
**THAT decision alone could make CHUC an immediate takeover candidate** for those 678 PMTAs.
The age-gated launch in August. A Big Tobacco player may not wait for the launch or FDA approval (as Reynolds did) and instead buy the company before the first age-gated-flavor vape hits the shelves.
As always, do your OWN due diligence…this is NOT financial advice.
The repeated insider buying, the first-ever flavor FDA approval, along with the Trump Admin pressuring FDA to approve more flavors and the upcoming age-gated launch make this one to watch.