Don Polly Division closure will help facilitate uplist to a national securities exchange and will remove hemp/CBD-related products trading restrictions on Charlie's common stock.
COSTA MESA, CA / ACCESS Newswire / November 13, 2025 / Charlie's Holdings, Inc. (OTCQB:CHUC) ("Charlie's" or the "Company"), an industry leader in the premium vapor products space, today announced that, in preparation for an uplist to a national securities exchange, the Company will discontinue sales of all hemp/CBD-related products and will wind-down and close its Don Polly division.
Under current U.S. federal law, hemp products are federally legal if they contain no more than 0.3% delta-9 THC by dry weight. The Agriculture Improvement Act of 2018 (2018 Farm Bill) removed hemp from the federal Controlled Substances Act, thus establishing hemp as an agricultural commodity that is legal to buy and sell across the United States. Nonetheless, because they categorize hemp/CBD products as "cannabis related," national securities exchanges such as the NYSE American, and many large US brokerages severely restrict companies that conduct business in the hemp/CBD industry.
Accordingly, in order to facilitate Charlie's potential uplist to a national securities exchange and also to increase significantly the liquidity of Charlie's common stock with major US brokers, Charlie's Board of Directors unanimously approved a resolution to discontinue sales of all hemp/CBD-related products and to wind down and close permanently its Don Polly division.
"Charlie's Don Polly Division has historically focused on brands and products in the hemp-derived marketplace, primarily aimed at meeting the needs of the wellness consumer," explained Ryan Stump, Charlie's co-founder and Chief Operating Officer "In recent years, however, the hemp/CBD market segment has become significantly less attractive as the Company's non-nicotine products lines ̶ SBX Disposables in particular ̶ have emerged as Charlie's most important business category. In this environment, we believe the time is right to close our Don Polly Division."
Henry Sicignano, Charlie's President added, "Don Polly's current sales represent little more than a rounding error relative to our 2026 SBX projections. Eliminating the hemp/CBD products stigma that has constrained trading of our stock - and which could also hamper the Company's planned uplist - will significantly benefit Charlie's shareholders."
About Charlie's Holdings, Inc.
Charlie's Holdings, Inc. (OTCQB:CHUC) is an industry leader in the premium vapor products space. The Company's products are sold around the world to select distributors, specialty retailers, and third-party online resellers through subsidiary company Charlie's Chalk Dust, LLC has developed an extensive portfolio of brand styles, flavor profiles, and innovative product formats.
For additional information, please visit Charlie's corporate website at: Chuc.com and the Company's branded online websites: sbxvape.com, CharliesChalkDust.com, enjoypachamama.com, and Pacha.co.
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 ongoing ability to quote its shares on the OTCQB; whether the Company will meet the requirements to up-list to a national securities exchange in the future; the Company's ability to successfully increase sales and enter new markets; whether the Company's PMTA's for its nicotine-containing products will be authorized by the FDA, and the FDA's decisions with respect to the Company's future PMTA's for nicotine products; the Company's ability to manufacture and produce products 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, synthetic nicotine, products containing nicotine substitutes, 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 brands, as well as other risk factors included in the Company's most recent quarterly report on Form 10-Q, annual report on Form 10-K, and other SEC filings. These forward-looking statements are made as of the date of this press release and are 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:
IR@charliesholdings.com
Phone: 949-570-069
SOURCE: Charlie's Holdings, Inc.
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