Company to focus on alternative markets
LOUISVILLE, Ky.--(BUSINESS WIRE)--
Turning Point Brands (NYSE:TPB), a Kentucky-based industry leading
marketer of Other Tobacco Products (OTP) and adult consumer
alternatives, announced today the formation of Nu-X Ventures, a new
company and wholly-owned subsidiary dedicated to the development,
production and sale of alternative products and acquisitions in related
spaces. Nu-X Ventures will be led by TPB veteran Graham Purdy, who will
serve as President of Nu-X Ventures.
“We are continuously looking for ways to meet the evolving preferences
of our customers,” stated Larry Wexler, President and CEO of TPB.
“Today’s announcement underscores our move into rapidly growing and
emerging markets, such as the CBD industry. Nu-X Ventures will put us on
the leading edge of the booming alternatives markets.”
The creation of Nu-X Ventures allows TPB to leverage its expertise in
traditional OTP management to alternative products. The TPB management
team has over 100 years of experience navigating federal, state and
local regulations that are directly applicable to the growing
alternatives market. Past acquisitions of VaporBeast and International
Vapor Group coupled with TPB’s large traditional sales and distribution
network provide the infrastructure to reach approximately 160,000 retail
outlets in North America and millions of consumers through its B2C sales
engine. Utilizing these core competencies, TPB is poised to both produce
and distribute a diverse range of products under the Nu-X division. The
company has a robust pipeline of products that will be released
throughout 2019 and beyond.
“Nu-X Ventures is an exciting next step in our push into the
alternatives market,” said Purdy. “Moving into this space brings us into
a world with a wide variety of new active ingredients and a multiplicity
of delivery methods. We are constantly looking for ways to innovate to
meet the desires of our consumers, and Nu-X Ventures is the vehicle that
will lead us into the alternatives market where we see a large market of
unmet adult consumer demand.”
A management presentation reviewing the product pipeline and Nu-X
ventures is available in the Events & Presentations section of the
Turning Point Brands website.
About Turning Point Brands, Inc.
Louisville, Kentucky-based Turning Point Brands, Inc. (NYSE: TPB) is a
leading U.S. provider of Other Tobacco Products. TPB, through its focus
brands, Stoker’s® in Smokeless products, Zig-Zag® in Smoking products
and VaporBeast® and VaporFi® in NewGen products, generates solid cash
flow which it uses to finance acquisitions, increase brand support and
strengthen its capital structure. TPB does not sell cigarettes. More
information about the company is available at its corporate website, www.turningpointbrands.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements may
generally be identified by the use of words such as "anticipate,"
"believe," "expect," "intend," "plan" and "will" or, in each case, their
negative, or other variations or comparable terminology. These
forward-looking statements include all matters that are not historical
facts. By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on circumstances
that may or may not occur in the future. As a result, actual events may
differ materially from those expressed in or suggested by the
forward-looking statements. Any forward-looking statement made by TPB in
this press release speaks only as of the date hereof. New risks and
uncertainties come up from time to time, and it is impossible for TPB to
predict these events or how they may affect it. TPB has no obligation,
and does not intend, to update any forward-looking statements after the
date hereof, except as required by federal securities laws. Factors that
could cause these differences include, but are not limited to:
-
declining sales of tobacco products, and expected continuing decline
of sales, in the tobacco industry overall;
-
our dependence on a small number of third-party suppliers and
producers;
-
the possibility that we will be unable to identify or contract with
new suppliers or producers in the event of a supply or product
disruption;
-
the possibility that our licenses to use certain brands or trademarks
will be terminated, challenged or restricted;
-
failure to maintain consumer brand recognition and loyalty of our
customers;
-
substantial and increasing U.S. regulation;
-
regulation of our products by the FDA, which has broad regulatory
powers;
-
uncertainty related to the regulation and taxation of our NewGen
products;
-
possible significant increases in federal, state and local municipal
tobacco-related taxes;
-
possible increasing international control and regulation;
-
our reliance on relationships with several large retailers and
national chains for distribution of our products;
-
our amount of indebtedness;
-
the terms of our credit facilities, which may restrict our current and
future operations;
-
intense competition and our ability to compete effectively;
-
uncertainty and continued evolution of markets containing our NewGen
products;
-
significant product liability litigation;
-
the scientific community’s lack of information regarding the long-term
health effects of electronic cigarettes, vaporizer and e-liquid use;
-
requirement to maintain compliance with master settlement agreement
escrow account;
-
competition from illicit sources;
-
our reliance on information technology;
-
security and privacy breaches;
-
contamination of our tobacco supply or products;
-
infringement on our intellectual property;
-
third-party claims that we infringe on their intellectual property;
-
failure to manage our growth;
-
failure to successfully integrate our acquisitions or otherwise be
unable to benefit from pursuing acquisitions;
-
fluctuations in our results;
-
exchange rate fluctuations;
-
adverse U.S. and global economic conditions;
-
sensitivity of end-customers to increased sales taxes and economic
conditions;
-
failure to comply with certain regulations;
-
departure of key management personnel or our inability to attract and
retain talent;
-
imposition of significant tariffs on imports into the U.S.;
-
reduced disclosure requirements applicable to emerging growth
companies may make our common stock less attractive to investors,
potentially decreasing our stock price;
-
failure to maintain our status as an emerging growth company before
the five-year maximum time period a company may retain such status;
-
our principal stockholders will be able to exert significant influence
over matters submitted to our stockholders and may take certain
actions to prevent takeovers;
-
our certificate of incorporation and bylaws, as well as Delaware law
and certain regulations, could discourage or prohibit acquisition bids
or merger proposals, which may adversely affect the market price of
our common stock;
-
our certificate of incorporation limits the ownership of our common
stock by individuals and entities that are Restricted Investors. These
restrictions may affect the liquidity of our common stock and may
result in Restricted Investors being required to sell or redeem their
shares at a loss or relinquish their voting, dividend and distribution
rights;
-
future sales of our common stock in the public market could reduce our
stock price, and any additional capital raised by us through the sale
of equity or convertible securities may dilute your ownership in us;
-
we may issue preferred stock whose terms could adversely affect the
voting power or value of our common stock; and
-
our status as a “controlled company” could make our common stock less
attractive to some investors or otherwise harm our stock price.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190115005273/en/
ir@tpbi.com
Robert Lavan, CFO
(502)
774-9238
Source: Turning Point Brands