Electronic Cigarette Company In Negotiations With Philip Morris

What many electronic cigarette users have feared from day one may be in the works

Philip Morris, the biggest maker of tobacco cigarettes in the US, has been discovered to be in talks with Ruyan Group, which manufactured the original electronic cigarette several years back in 2005. A news article found on Quamnet.com states the seriousness of the matter:

“Ruyan Group said that an agreement between the Company and Philip Morris International Management S.A. could not be reached on matters relating to the co-operation between them on its “electronic cigarettes” by the end of the first and exclusive phase of negotiations.”

As the FDA has been given authority recently over the tobacco industry, the move by Philip Morris could be a carefully calculated move to gain controlling interest over the products inside the US and abroad. The motives of the manufacturer are not clear at this point, but many speculate everything from shutting the industry down by acquiring the rights to it all the way to quite possibly launching its own electronic cigarette product and taking it mainstream.

Ruyan Group’s stock trading was suspended on November 2nd waiting an announcement on a price sensitive matter. A 20% sudden jump in the company’s stock price could be related to this .

But, that isn’t the first time Ruyan Group’s stock has soared. Back in June, the stock rose over 35% after the announcement that the manufacturer was negotiating with what Quamnet called an “independent third party”. Later on July 6th, that third party was found to be Philip Morris.

What this could mean for the electronic cigarette industry both internationally and in the US is uncertain, but what seems to be clear is: Philip Morris wants in.

In other related news, Ruyan Group Co. also sold their office properties for HK$28.57 million to an undisclosed buyer on October 23rd.

source: http://www.officialwire.com

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