As sensationalist and deceptive headlines roil the U.S. media after outbreaks of adverse health events in the U.S., a sense of unease may be growing among related Canadian businesses.
The headlines ties these adverse health events to “vaping” broadly. Intentionally or accidentally, however, these headlines are conflating the use of nicotine-based e-liquid and the devices which turn it into vapor with dangerous black market THC liquid, allegedly thickened with Vitamin E. The latter are in fact the culprit behind the outbreak of negative health events; these products are not produced, distributed, or sold by reputable e-liquid manufacturers. The former are not to blame. But the headlines make no such distinctions, and this has resulted in something of a panic. This panic has even reached the President of the United States.
And it’s this panic that has led to a sense of unease in Canadian businesses. Take as an example Aurora Cannabis Executive Chairman Michael Singer, who spoke out on Thursday’s CNBC “Power Lunch”, saying of the U.S. President’s announcement of a potential ban on flavored e-liquid and e-cigarettes:
“Personally, I am very worried about what I’m reading in the U.S. In Canada, it’s very different, and we’re heavily regulated by Health Canada, which is a good thing.”
While Singer and his company represent cannabis vapor in Canada, it’s the U.S. hysteria and coming crackdown on the nicotine vapor industry which is causing unease and, in fact, destabilizing Singer’s industry and perhaps the Canadian nicotine vapor industry as well. Singer’s own company has seen weak earnings guidance and a stock drop of 8.5% on Thursday. This in spite of the fact that Aurora works closely with Health Canada to ensure that it complies with all applicable regulation regarding product content and quality.
“When it comes to vaping or vaping products that we’re going to be launching, we’re going to be testing every one of our products to a rigorous standard to ensure the products we offer to consumers are safe and we feel comfortable that we are not in any way putting at risk our customers or our patients with regards to our derivative products.”