I bought CHUC after seeing the constant insider buying, especially one particular buyer, and then putting the pieces together with last week’s government news.
Tell me if you think my logic is correct.
Last year, RJ Reynolds (Big Tobacco) got tired of waiting for the FDA to approve CHUC’s PMTAs and bought/licensed 16 of them for **$7.5M plus an additional $4.2M** potential licensing fees. They made three separate purchases, which raised some eyebrows…why would they **buy these BEFORE FDA approval?**
A couple of weeks later, Dr. Ed Carmines (Director of CHUC, who previously worked for Altria and Reynolds) bought a significant amount of CHUC stock in the open market.
I have to point out that CHUC insiders/founders already own **close to 50%** of the company.
Just recently, **5 CHUC Insiders (including Carmines)** **invested $510K** to amend certain PMTAs to “include age-gating technology”.
Is management trying to get over the 50% threshold?
Here’s where things get really interesting.
On April 29, A three-judge panel of the U.S. Court of Appeals for the Fifth Circuit heard oral arguments this week challenging the FDA’s denial of marketing authorization for flavored electronic nicotine delivery systems (flavored vapes).
The lawyer doing the arguing…**is from R.J. Reynolds**, the company that bought CHUC PMTAs.
On that same day, the President of CHUC gave an interview and said this:
*“We believe, strongly, that when Charlie’s introduces age-gated disposables to the market we* ***will have our pick of Big Tobacco licensee candidates****.”*
*“We believe 10-15 Charlie’s flavored, age-gated PMTA products* ***could be worth, in a sale, substantially more than $2 billion… or more than 25X today’s share price****”*
Then, last week, on May 7, the FDA did something it had never done before.
They approved 2 flavored vapes from Glas, which include age-gating technology. Rumor has it the FDA Chief, who is against approving them, was pressured by President Trump after seeing the data that vaping is better than smoking.
The FDA basically said they will approve flavored vapes so long as they include age-gating technology (preventing youth from using them).
CHUC and IKE Tech are planning to launch a line of flavor vapes with age gating in Q2. IKE Tech, has what’s considered the BEST age gated vape device.
IKE Tech is a joint venture between Ispire Technology Inc., Berify, and …**get this…Chemular Inc**
Dr. Ed Carmines (Director of CHUC and the big buyer of CHUC shares) **is the Chief Scientific Officer of Chemular**.
See how I put the pieces together now?
What the government just did by approving Glas with its 2 flavor vapes is create a monopoly. A Big Tobacco player could buy them and own the flavored vape market.
And RFK Jr just declared war on illegal Chinese vapes (they’re the only flavored vapes in stores today).
CHUC will soon launch an age gated flavor vape line, **creating 2 players.**
Here’s the difference between CHUC and Glas.
A flavored vape is really 2 parts..the “drug” and the “drug” delivery device.There are plenty of companies with an age gated device, it is the PMTA that becomes valuable.
CHUC has over 678 PMTAs. According to the company, has a valued over $650M….now if they ad age gating to them. What would that be worth?
We already know CHUC is working with R.J Reynolds. They could buy CHUC for pennies.
**Altria is the one right now that has the most to lose**… they have no US vape presence.
CHUC just posted great year-end numbers, and they’re profitable. They also said they are looking to uplist to a major exchange soon.
All that insider buying, the FDA’s shift, and the upcoming launch make me think Big Tobacco would like to own those 678 PMTAs… and with CHUC’s market cap around $70M, the reward could be worth the risk.
Tell me… **does my investment decision make sense?**