Charlie’s Holdings, Inc. (OTCQB: CHUC) has announced a significant financial boost: a $2 million credit facility secured from independent board member Michael D. King, who owns over 2.5% of the company.
The facility—split into an initial $1 million tranche followed by two $500,000 installments—carries a 13% interest rate with each tranche due in full, including interest, after 12 months. Notably, the terms are entirely non-dilutive, with no equity conversion or warrant provisions—a structure the company describes as exceptionally “company-friendly,” according to a press release.
Charlie’s positioned the funding as crucial for meeting surging demand for its SBX product line, particularly in the growing convenience store channel. “We are fortunate to have the problem of requiring more funds to meet market demand for SBX… and we are absolutely determined to grow prudently,” said Henry Sicignano, Charlie’s President.
He emphasized that, unlike many peers forced into dilutive equity offerings or expensive financing, the company and its COO, Ryan Stump, secured favorable terms that benefit shareholders.
Early performance metrics strongly support the strategy. SBX — a non‑nicotine disposable vape offering traditional flavored vape sensations and flavored using proprietary Metatine — a brand name for (S)-6-methylnicotine, a synthetic nicotine analogue or nicotine-like chemical, which is not subject to U.S. Food and Drug Administration regulation — has exceeded internal sales expectations in several Southeast regions.
“In a Company‑sponsored focus group survey of adult consumers who vape, Charlie’s non‑nicotine SBX Disposables were preferred over JUUL tobacco‑flavored vapes 15:1,” the company reported.
King echoed the company’s optimism, stating: “CHUC has a compelling strategic plan, tangible competitive advantages, and a management team with more skin in the game than any other public company I know.
“I look forward to CHUC uplisting to a national securities exchange… hopefully at a much higher market cap. Henry and Ryan have my unwavering support.”
With SBX already outperforming expectations and this fresh capital infusion, Charlie’s is poised to deepen its retail penetration in convenience stores. King also indicated openness to providing further loans if sales milestones warrant increased production and distribution.
