Company will use capital to further accelerate rapid retail expansion and online sales, as well as hire key team members to support continued record growth
CHICAGO, August 8, 2022 /PRNewswire/ — Black Buffalo Inc. (“Black Buffalo” or the “Company”) today announced the successful completion of a $30 million Series A capital raise, led by The Pritzker Organization (“TPO”) and Listen Ventures, with additional participation from Watchfire Ventures, Vice Ventures and UTC Ventures (a subsidiary of United Tobacco Company). CEO TPO Jason Pritzker and Jeff Cantalupo, managing partner of Listen Ventures, joined Black Buffalo’s board of directors upon closing of the transaction.
Since its founding in 2015, Black Buffalo has invested tens of thousands of hours of research and development into creating the industry’s best alternative smokeless tobacco products, which include long cut and bagged varieties and are marketed exclusively to adult consumers (21 years and over) of nicotine or tobacco. The company offers eight commodity products that contain pharmaceutical grade nicotine derived from tobacco, but no tobacco leaves or stems, and these commodity products are still subject to a bulk tobacco product application Pre-Marketing (“PMTA”) that the Company has timely submitted to the U.S. Food and Drug Administration (“FDA”) in September 2020. The Company has also developed a range of nicotine-free and tobacco-free products under the ZERO brand. Black Buffalo has enjoyed continued record growth, with revenue growing approximately 10x since the start of 2020. The company’s products have received top three Best New Product 2021 awards from the chain’s leading trade publications convenience stores.
CEO TPO Jason Pritzker noted, “Black Buffalo’s strategy and vision aligns well with the Pritzker organization’s core competency of partnering with exceptional management teams to build best-in-class companies for the long term. . We are excited to partner with Black Buffalo to continue to drive their rapid growth. .”
President and Co-Founder of Black Buffalo Mark Hanson commented, “We are delighted to have such outstanding investment partners in TPO and Listen Ventures. Black Buffalo’s business is experiencing unprecedented growth as adult consumers continue to seek alternatives in the nicotine and tobacco segments. We believe TPO and Listen Ventures will provide much more than just capital to accelerate all aspects of our business, including identifying key new hires in sales, marketing, manufacturing and finance.”
Black Buffalo products can be purchased by adult consumers (21 and older) of nicotine or tobacco products at more than 800 convenience and tobacco outlets nationwide, as well as online at www.blackbuffalo.com. To find the retail store selling Black Buffalo products nearest you, please visit https://blackbuffalo.com/pages/where-to-buy-black-buffalo. Interested retailers can contact [email protected] to learn more about Black Buffalo’s industry-leading retail program to support sales in locations ranging from national convenience store chains to independent convenience stores.
About Black Buffalo
Founded in 2015, Black Buffalo has created the world’s best smokeless tobacco alternative products, backed by over 20,000 hours of research and development. In 2021, the company’s products received the CSP Retailer Choice Best New Product Award, the Convenience Store News Best New Product Award, and the CStore Decisions Hot New Products Award. Some of Black Buffalo’s smokeless tobacco alternative products contain pharmaceutical grade nicotine, which is an addictive chemical, and Black Buffalo’s products are intended for use only by adults 21 and older who already use nicotine. tobacco or nicotine products.
On September 9, 2020, Black Buffalo has submitted a bundled PMTA for its five three-pack, long-cut smokeless tobacco nicotine replacement products, marking a milestone in the company’s history and ensuring the products’ continued commercialization. mentioned above during the PMTA review process. On March 4, 2021, Black Buffalo has received notification of FDA acceptance of its bundled PMTA. Further away May 20, 2022the company received notification of the FDA’s filing of its pooled PMTA, which reflected the FDA’s determination that the company’s PMTA “is sufficiently complete to enter [the] substantive examination phase. “The Company does not use synthetic nicotine in its products, and therefore recent federal legislation bringing synthetic nicotine products under FDA regulation does not impact Black Buffalo’s products. In addition, the Company’s products were in the US market on August 8, 2016 (i.e. the effective date of the so-called deeming rule.)
About the Pritzker Organization
The Pritzker Organization (“TPO”) is the merchant bank for the commercial interests of the Tom Pritzker family. For more than 60 years, TPO has focused on partnering with exceptional leaders to create value across a wide range of businesses. TPO seeks opportunities where it can add value alongside its partners and grow businesses over a meaningful time horizon. TPO invests at any stage of a company’s life cycle, from early stage to maturity, through acquisitions of control, minority stakes and anchor investments in third-party managers. Additional information can be found at www.pritzkerorg.com.
About Listen Ventures
Founded in 2010, Listen is a consumer-obsessed venture capital firm based in Chicago. Listen’s team of investors, brand experts and creative capitalists apply a focused investment strategy in partnership with extraordinary entrepreneurs to build the brands of tomorrow. Portfolio brands include Calm, Factor, Public Goods, Interior Define, Own Up, Miss Grass, Dame and KiwiCo. Learn more about Listen.co.
Black Buffalo Forward-Looking Statements
All projections or other estimates contained herein are forward-looking statements and are based on certain assumptions that Black Buffalo Inc. (“Black Buffalo”, the “Company”, “we”, “us”, “our”, ” our” et . al, as stated in the context hereof) deemed reasonable. Financial, market, economic or legal conditions, Company performance, regulatory developments and other factors could cause actual results to differ materially from those set forth in the forward-looking statements below. The Company’s business and outlook may have changed significantly since the date hereof. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, but are not limited to: (i) contraction or lack of growth in the markets in which we compete and in which our products are sold, (ii) unexpected increases in our expenses, including manufacturing expenses, (iii) delays or cancellations of expenses by our suppliers or customers, (iv) delayed action or the issuance of refused orders in response to our requests for pre-market tobacco products, or other adverse actions taken by the United States Food and Drug Administration, and (v) the impact of the current coronavirus pandemic or other pandemics or natural disasters on our procurement operations and supply chain. The forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
Black Buffalo Media Contacts
jeffrey david (JD), Co-founder
Matthew Hanssondirector of growth
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SOURCE Black Buffalo