In the HCMC lawsuit update today, the company said it would make a submission to the district court regarding a MOTION TO DISMISS the case. That filing was due on April 19, 2021. The company operates vape stores and owns multiple patents. It filed a lawsuit against Philip Morris because it claims that the tobacco giant has violated the terms of those patents. If you’re wondering if the lawsuit is really valid, read on to find out more.
In recent years, a public company known as Healthier Choices Management Corp. (HCMC) has made an impressive leap in terms of growth and customer satisfaction. After acquiring Mother Earth’s Storehouse, the conglomerate has become one of the largest organic health food chains in the country. Its flagship store in the Hudson Valley is known for its upscale, organic health food, and its stores also feature a variety of other products that promote a healthier lifestyle.
In a short period of time, Healthier Choices Management has built a massive following, trading 10s of billions of shares per day. The company is also pursuing a landmark patent infringement suit against Philip Morris USA, Inc., and Philip Morris Products S.A., and has more than 400,000 shareholders. In addition to its large number of members, Healthier Choices has also become a hot topic on Reddit, where its stock is frequently discussed.
HCMC’s financials for its fourth quarter and its fiscal year ended March 31, 2021, were released recently. The company improved adjusted EBITDA for the year and forecasts a strong performance for fiscal year 2020. However, the company’s gross profit from continuing operations decreased by $0.7 million compared to the same period a year ago. Overall, the results were better than HCMC’s fourth quarter and full year earnings last year.
While the company has strong fundamentals, Philip Morris is suing Healthier Choices Management Corp. based on a patent issued by HCMC. HCMC is attempting to enforce its patent, arguing that it has not violated the law. If the patent is invalidated, Philip Morris may settle for hundreds of millions of dollars. HCMC stock is expected to resume its upward trend to new highs and continue to rise. If the stock trades above $0.0065, shareholders should be looking for a powerhouse break.
Healthier Choices Management Corp. (HCMC) operates a chain of nine retail vape stores in the southeast U.S., which collectively generate more than $1 million in revenue every month. The company sells vaporizers, e-liquids, and other related products to consumers who wish to try a healthier lifestyle. The company is also developing additional brands and marketing these products to new markets.
The FDA recently announced that it will begin regulating electronic cigarettes. Those who sell the products will have to acquire a state license before they can sell them. Meanwhile, retailers are attempting to fight the new rules by filing suits in federal court. KWWL TV and the Greene County Daily World reported on the story. While many local vape shops are hoping for the best, many worry that new regulations could shut them down. In Iowa City, for example, one store opened a vaping lounge. According to Nadia Jefferson-Brown, who was fined PS440 for selling nicotine products to children, this law is causing many vape stores to close.
Healthier Choices Management Corp. has received multiple patents, one for its Q-Cup(tm) technology. This patent will cover the Q-Cup’s 360-degree heat-emitting coil, which is used to deliver cannabis and CBD concentrates to the user. This patent is expected to be issued within 60 to 90 days. HCMCC has numerous patents on various topics relating to cannabis and vaporizers.
The company’s patent portfolio includes multiple patents relating to safer vaping technology and synthetic nicotine compositions. Healthier Choices’ patent portfolio has a value of $0.28 million as of September 2020. The company may be hoping for a settlement with Philip Morris, as the news of its lawsuit has sparked significant retail investor interest. In addition, the company has several other patents in the health and wellness space, including one on the use of CBD in vaping.
HCMC’s management team includes Jeffrey Holman, a seasoned executive and a corporate lawyer. He is also the President of Jeffrey E. Holman & Associates, P.A., a South Florida law firm. Christopher Santi is the President of Santi Management Corporation. John Ollet serves as the CFO. He has previously served as the executive vice president of finance at Systemax, Inc. North America Technology Division.
The stock has a long history of innovation, and a significant patent court win could pay off handsomely for speculators. Although HCMCC’s stock has recently reached a bottom at $0.002, it appears that it has further downside. However, a bullish momentum is lacking and positions taken now will be speculative. If you’re a long-term investor looking for a good opportunity, HCMCC has a lot to offer.
Healthier Choices Management Corp. has filed a patent infringement lawsuit against Philip Morris, the company that makes IQOS, an alternative to smoking tobacco. The company hired the international law firm Cozen O’Connor to file the lawsuit. HCMC cites several patents covering the electric pipes, heating coils, and delivery systems used in IQOS cigarettes. The company claims that the Philip Morris products infringe on the HCMC patent and violate its patent.
While it is still unclear what the outcome of the lawsuit will be, one thing is certain: Philip Morris has filed a petition with the U.S. Patent and Trademark Office and Patent Trial and Appeal Board seeking to invalidate the Healthier Choices Management Corp. patent. If the patent is valid, the company may be able to settle for hundreds of millions of dollars. Microcapdaily first reported on the lawsuit on January 27 and its impact on HCMC stock. We’ll continue to update this story as new information becomes available.
HCMC has been a popular microcap for investors in recent months. In a very short period, it has developed a colossal following with over 400,000 shareholders. This microcap is pursuing a landmark patent infringement suit against Philip Morris Products SA. Currently, the stock is trading over $5 million a day, and it has a market cap of over $4 billion.
The lawsuit claims that Philip Morris’s IQOS electronic cigarette infringes on three patents. RJR’s patents are unrelated to HCMC’s. Philip Morris’s parent company, Altria Group, rejects the claims, and countersues, alleging that IQOS’s electronic nicotine delivery systems violate their patent. The company has already invested $8 billion in its ICOS system.