Charlie's Holdings Initiates PACT Act Compliance Measures to Ensure Uninterrupted Service to Distributor Partners
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Charlie's Holdings Initiates PACT Act Compliance Measures to Ensure Uninterrupted Service to Distributor Partners

Tuesday, April 27, 2021 9:45 AM
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COSTA MESA, CA / ACCESSWIRE / April 27, 2021 / Charlie's Holdings, Inc. (OTC PINK:CHUC) ("Charlie's" or the "Company"), an industry leader in both the premium, nicotine-based, e-cigarette space and the hemp-derived CBD wellness space, today announced that the Company has successfully assembled a solution "network" in order to meet the requirements of both the Consolidated Appropriations Act of 2021 and the Prevent All Cigarette Trafficking Act (the "PACT Act"). As a result, Charlie's wholesale partners will receive uninterrupted product flow even as many other companies in the e-cigarette industry are scrambling to find feasible solutions to the challenges posed by the PACT Act.

In December 2020, Congress passed a law entitled the Preventing Online Sales of E-Cigarettes to Children Act. Commonly referred to as the "vape mail ban," the new law: (i) instructs the U.S. Postal Service to create regulations prohibiting shipment of all vaping products through the U.S. Mail to residential addresses, and (ii) incorporates vaping products into the PACT Act. The postal ban and PACT Act provisions include all e-liquid and oil vaping devices, nicotine and nicotine-free e-liquids, CBD carts, liquids and oils, and every related component, part or accessory intended for those products.

Following passage of the new law, all of the major delivery companies announced that they would join the U.S. Postal Service in ceasing delivery of all e-cigarettes and vaping products, not just to homes but to businesses as well. This development has caused significant hardship to manufacturers, distributors, and retailers across the industry.

To ensure the uninterrupted delivery of Charlie's own products to wholesaler partners throughout the U.S., the Company created an innovative new logistics system solution comprised of a dedicated team focused on sales reporting and excise tax implications, software enhancements to ensure accuracy and efficiency of reporting, and an ad hoc "private network" of shipping companies.

"At Charlie's, we take pride in all of our industry-leading regulatory, tax, and legal compliance initiatives," explained Ryan Stump, Charlie's Holdings Chief Operating Officer. "While many in our industry are scrambling to find feasible solutions to serve their customers, we are pleased to report that Charlie's new solution network of logistics companies, shipping carriers, excise tax specialists, and compliance consultants will meet the requirements of both the Consolidated Appropriations Act of 2021 and the PACT Act. We have worked very hard to ensure that Charlie's customers will not miss a single shipment."

About Charlie's Holdings, Inc.
Charlie's Holdings, Inc. (OTC PINK:CHUC) is an industry leader in both the premium, nicotine-based, e-cigarette space and the hemp-derived, CBD wellness space through its subsidiary companies Charlie's Chalk Dust, LLC and Don Polly, LLC. Charlie's Chalk Dust produces high quality vapor products currently distributed in more than 90 countries around the world. Charlie's Chalk Dust has developed an extensive portfolio of brand styles, flavor profiles and innovative product formats. Launched in June of 2019, Don Polly creates brands and products in the hemp-derived marketplace aimed to meet the needs of the ever-evolving wellness consumer. Don Polly's premium quality CBD products derive from single-origin-sourced hemp and are processed in a proprietary air extraction facility.

For additional information, please visit our corporate website at: and our branded online websites: and

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 ability to successful increase sales and enter new markets; the FDA's decision with respect to the Company's PMTAs; the Company's ability to manufacture and produce product 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 and products containing cannabidiol; litigation risks from the use of the Company's products; risks of government regulations; 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-K, Form 10-Q and other SEC filings. These forward-looking statements are made as of the date of this press release and were 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:
[email protected]
Phone: 949-570-0691

SOURCE: Charlie's Holdings, Inc.

Charlie's Holdings, Inc.
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