Ispire secures interim license for nicotine production in Malaysia

Published 22/05/2025, 14:10
Ispire secures interim license for nicotine production in Malaysia

LOS ANGELES - Ispire Technology Inc. (NASDAQ: ISPR), a company specializing in vaping technology with a market capitalization of approximately $148 million, has received the interim license from the Malaysian Government to manufacture nicotine products. This marks the company as the first to be granted such federal and state-level approval in Malaysia, allowing immediate commencement of manufacturing and exportation activities. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, positioning it well for this expansion.

Michael Wang, Co-Chief Executive Officer of Ispire, highlighted the significance of this development, stating it is a considerable step towards establishing the company as a key international player in vaping hardware. With the interim license, the company’s Malaysian facility is expected to expand its production capacity by adding 74 new production lines to the existing six. This expansion comes as the company’s stock trades near its 52-week low of $2.47, having declined about 66% over the past year. For deeper insights into Ispire’s growth potential and comprehensive analysis, investors can access detailed research through InvestingPro’s exclusive Pro Research Report.

The final license, anticipated in the coming months, will complete Ispire’s regulatory requirements in Malaysia. Wang emphasized the strategic move to diversify Ispire’s production base, aiming to mitigate risks associated with geopolitical factors and potential impacts on pricing.

Ispire is known for its research and development in the e-cigarette and cannabis vaping sectors, with over 200 patents globally. Its tobacco products, sold under the Aspire brand, are available in various markets, excluding the U.S., China, and Russia. The company’s cannabis products, sold under the Ispire brand, are distributed primarily to other cannabis vapor companies on an original design manufacturer basis.

The approval of the interim license is based on a press release statement and is part of Ispire’s broader strategy to expand its manufacturing footprint and market reach. However, as with all forward-looking statements, there are risks and uncertainties that could affect the company’s future results and financial condition.

Ispire’s announcement is a factual development in the industry, and the company’s progress will be closely watched by investors and competitors alike. The information provided here is based on a press release statement and does not include any speculative or forward-looking assessments.

In other recent news, Ispire Technology Inc. reported a net loss of $10.9 million, or $0.19 per share, for Q3 2025, missing analysts’ expectations of a $0.15 profit per share. Revenue also fell short, coming in at $26.2 million compared to the projected $65 million, marking a 12.7% decline year-over-year. The company announced a strategic shift by appointing Jie "Jay" Yu as the new Chief Financial Officer, aiming to enhance financial management amid cost-cutting measures, including a $3.6 million payroll reduction and plans to cut an additional $6.6 million in operating expenses. Ispire is transitioning its manufacturing operations from China to Malaysia, having secured a nicotine manufacturing license there, which is expected to mitigate tariff risks and enhance production capabilities. The company also launched new products and filed a component PMTA for a blockchain-based age verification system with the FDA. Analysts from Roth Capital Partners and Zuanic and Associates inquired about Ispire’s strategic shifts and competitive positioning during the earnings call, highlighting the company’s plans to expand its regulatory-compliant technologies and explore international opportunities. These developments reflect Ispire’s ongoing efforts to navigate a challenging market environment and align its operations with strategic goals.

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