Company: CHUC
Filing Date: 2025-04-17
Form Type: 8-K
Source: 0001437749-25-012214
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Company: Charlie's Holdings, Inc.
Filing Date: 2025-04-17
Form: 8-K
Item: Item 2.01
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Item 2.01 Completion of Acquisition or Disposition of Assets.

On April 16, 2025, Charlie's Holdings, Inc. (the "Company") entered into and closed an Asset Purchase Agreement (the “ Agreement”) with R. J. Reynolds Vapor Company (the “ Buyer”) pursuant to which the Buyer purchased twelve of the Company’s PACHA synthetic products and related assets (the “ Assets”) that are covered by a premarket tobacco application (“ PMTA”) first submitted by the Company in 2022. The purchase price for the Assets was $5.0 million paid at closing, plus a contingent one-time payment of up to $4.2 million based on product sold by the Buyer during the one year following the first day of commercialization of the Assets. The Agreement contains customary representations, warranties, and indemnities by each of the parties.

The foregoing description of the Agreement does not purport to be complete, and is qualified in its entirety by reference to the full text of the form of Agreement, which is attached to this Current Report on Form 8-K as Exhibit 10.1 and incorporated by reference herein.

Item 9.01(d)Financial Statements and Exhibits.