Worcester Business Journal

4 Worcester Business Journal • March 30, 2015 www.wbjournal.com F or seasoned smokers, e-cigarettes that release nicotine through vapor instead of smoke provide a path to quitting that many prefer to other smoking cessation aides, such as nicotine gum and patches, because they simulate the actual smoking experience. But according to Attorney General Maura Healey and others, e-cigarettes pose addiction dangers similar to those of tobacco products and should be regulated accordingly. That's why she has proposed a statewide ban on selling e-cigarettes to minors under a new set of regulations filed this month. What's in the proposal? Healey contends that e-cigarette companies use marketing tactics similar to those used by the tobacco industry in the 1990s that make their products appeal- ing to children. In the case of e-cigarettes, the bright- colored packaging and child-friendly flavors are par- ticularly alluring, according to Healey. So, aside from a ban on selling the products to those under 18, Healey's proposal would also prohibit free samples and promotional giveaways, as well as the sale of e-cigarettes through vending machines or other meth- ods that don't involve a face-to-face transaction. She also wants the products kept behind store coun- ters, or otherwise out of consumers' reach, while mak- ing the sale of the nicotine liquid or gel (used to deliv- er the nicotine in e-cigarettes) without child-safe packaging an "unfair and deceptive act." This is meant to prevent children from ingesting the substances. How does it compare to other states? When it comes to regulating the sale of e-cigarettes to minors, Massachusetts lags most other states, according to the National Conference of State Legislatures. While many Bay State cities and towns have imposed their own age restrictions, Massachusetts was one of just nine states that had not implemented a ban on sales to minors as of Jan. 1. Does Healey have support? Healey's proposal, which is open to public comment until April 24, has generated early support from law- makers as well as the retail industry. Senate Majority Leader Harriette Chandler, a Worcester Democrat, said in a statement from Healey's office that the state must recognize e-cigarettes as a public health threat, and "respond to their unregulated sale to keep … minors tobacco free." On the retail side, Jon B. Hurst, president of the Retailers Association of Massachusetts, was quoted in the same statement, expressing wide support from his membership for the proposal, which he called a "com- mon sense, statewide regulation, which treats legal products, sellers and consumers consistently across the commonwealth." Q DEVENS — AMSC, whose stock has been trading at less than $1 per share for four months, issued a 1-for-10 reverse stock split after approval by shareholders, the wind and power grid manufacturer announced. AMSC, for- merly known as American Superconductor, cut the number of shares in half, from 150 million to 75 million, effective with last Wednesday's trading. The stock, which trades on the Nasdaq exchange, closed the day before at 70 cents. Because of the reverse split, it was to open the next day at $7.01. In its most recent quar- terly report, AMSC said it lost $6.4 million and projected losses of less than $6 million in the current quarter. The company said it has enough money to fund operations through the end of 2015. MARLB OROUGH — Ocata Therapeutics announced a licensing agreement with Allele Biotechnology & Pharmaceuticals of San Diego. The agreement will give Ocata, formerly Advanced Cell Technology, access to technology in the area of human- induced, pluripotent stem cells (iPSCs) that Ocata believes will help it develop treatments for eye disorders. The agreement will allow the firm to pro- duce "commercially viable human tis- sue for transplantation," Paul Wotton, president and CEO, said in a state- ment. In separate news, Ocata report- ed a net loss of $34.7 million in 2014, 12 percent deeper than its net loss in 2013. Revenue was $157,875 for 2014, a decrease of $67,110 or 29.8 percent from 2013. The decrease is due to license agreements that expired in 2013, the company said. HOLLISTON — Precision Digital Corp. has acquired a building in near- by Hopkinton for $5.35 million. The company, represented as 227-229 South Street LLC, purchased the com- mercial building at 227-233 South St. R.W. Holmes Realty, which helped broker the deal, said the 43,000-square- foot, multi-tenanted building will be renovated by Precision, which will occupy 21,000 square feet. The build- ing sits on 12 acres. Precision, estab- lished in 1974, makes and distributes digital panel meter devices. WORCESTER — Rome Building Products, a distributor of exterior building materials, has been acquired by ABC Supply Co. of Beloit, Wis. With the acquisition, Rome, at 18 Sherman St., will become the newest ABC Supply branch, and its second in Worcester, ABC Supply said in a state- ment. Former Rome Building Products owner Howard Witkes is retiring, the ABC statement said. However, the other associates will join ABC Supply, the company said. HOLLISTON — Harvard Apparatus Regenerative Technology, or HART, reported that the company had revenue of $45,000 in the fourth quar- ter of 2014 from the sale of bioreactor systems for organ regeneration research. That was more than double the $22,000 in revenue for the same period in 2013. The company develops regenerated organs for transplants, initially focused on the trachea. It spun off from Harvard Bioscience, also of Holliston, in the fall of 2013. Five patients have been transplanted with a HART-Trachea so far, with an average survival of 22 months, which the company called "a significant improvement over the prognosis at the time of transplant which was typically just a few months." WESTBOROUGH — Chitika Inc., an Internet advertising company, announced it will spin off its mobile advertising business unit, Cidewalk. Chitika is investing $4 million to fund it, according to a statement, and Cidewalk has purchased office space in Southborough to accommodate staffing growth. Its new office is at 154 Turnpike Rd. in space formerly occu- pied by Bodyscapes Fitness. Chitika expects Cidewalk, launched in 2014, to generate $10 million in gross reve- nue over the next year, the statement said. Cidewalk also announced a new agreement with Yahoo, which will allow it to distribute Cidewalk to Yahoo Small Business users, the com- pany said. WORCESTER — Central Mass Landscapes has purchased 7 Clapp St. in Worcester from Peterson Oil Co. The Worcester-based landscape maintenance and construction com- pany is relocating to the 1.8-acre site, which has been improved with a 2,000-square-foot garage building. Kelleher & Sadowsky Associates of Worcester brokered the transaction. MARLBOROUGH — Boston Scientific has won federal regulatory approval for an implantable medical device that helps patients at high risk for stroke, the company said. The product, the Watchman Left Atrial Appendage Closure Device, was approved by the U.S. Food and Drug Administration (FDA). It will be made available to sites in the U.S. where Boston Scientific (BSX) is conducting clinical studies, BSX said. It will also be available in specialized centers as doctors are trained on how to implant the device. REGIONAL BRIEFS >> Continued on next page Verbatim "Families would not be able to place a loved one in a facili- ty in over one-third of the state's cities and towns if just one facility in that city or town were to close." Ann Marie Antolini, a vice president at the Massachusetts Senior Care Association, on a growing shortage of available nursing home beds in the state. Source: Boston Globe, March 24 >> "I agree with you; it's child abuse. I also believe, though, and recognize that there are a lot of people who are dealing with this as a disease." Atty. Gen. Maura Healey, questioning the need for state laws that automatically remove newborns from their mothers' custody if born addicted to drugs. Source: Boston Herald radio interview via State House News Service, March 23 >> "It's clear that local mobile advertising has an incredible amount of untapped potential for small businesses." Venkat Kolluri, CEO of Chitika Inc. in Westborough, announcing the spinoff of the company's mobile advertising segment, Cidewalk. Source: Company statement, March 18 >> BRIEFING: BANNING ECIGARETTES CENTRALMASS In Review

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