Digital Ally Signs Exclusive Master Distribution Deal with Redwood Scientific to Launch Breakthrough Anti-Vaping Product
- Exclusive global distribution rights secured for innovative nicotine cessation products
- First-to-market product specifically targeting the growing vape addiction market
- Large target market with 28.8 million U.S. adult smokers and growing e-cigarette user base
- Potential for significant market penetration in the nicotine cessation space
- Product launch dependent on successful completion of clinical trials
- No immediate revenue generation as sales cannot begin until clinical study concludes
- Entering a new market segment outside Digital Ally's traditional business focus
Insights
Digital Ally secures exclusive global distribution rights for innovative nicotine cessation products, potentially opening significant new revenue streams pending clinical trial completion.
Digital Ally's exclusive distribution agreement with Redwood Scientific represents a significant strategic pivot into the healthcare technology space. The company has secured global rights to TBX-Free and TBX Vape-Free - oral thin-film products targeting nicotine addiction in both traditional smokers and the growing vape user population.
What makes this deal particularly noteworthy is that TBX Vape-Free would be the first-to-market solution specifically designed for vape users, addressing a critical gap in addiction treatment options. The market potential is substantial with the CDC reporting
The agreement's comprehensive nature - including rights to technologies, trademarks, manufacturing processes, and vendor relationships - provides Digital Ally with complete control over the commercialization pathway. However, investors should note that no sales or marketing will begin until Redwood's final-stage clinical trial concludes, making this a pre-revenue development for now.
This partnership represents a calculated diversification strategy for Digital Ally, potentially transforming its revenue model and market positioning. The tobacco cessation market has historically offered high margins, and securing exclusive distribution rights to an innovative, first-of-its-kind product could create substantial value if clinical trials demonstrate efficacy. The timing aligns with increasing regulatory scrutiny on vaping products, potentially accelerating market adoption once available.
Overland Park, KS, June 23, 2025 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ: DGLY) today announced it has signed a Master Distribution Agreement (the “Agreement”) with Redwood Scientific Technologies (“Redwood”), granting Digital Ally exclusive global rights to distribute Redwood’s clinically-driven nicotine cessation products, including TBX-Free and TBX Vape-Free.
This Agreement establishes Digital Ally as the exclusive commercialization partner for a first-of-its-kind product designed to help Americans overcome addiction to vape devices. TBX Vape-Free, delivered via oral thin-film technology, is expected to be the first product of its kind to directly target vape-related nicotine dependency. This Agreement provides Digital Ally the exclusive global rights to Redwood's full range of technologies, brands, trademarks, manufacturing processes, vendor relationships, and additional essential assets.
Redwood’s current product suite includes but are not limited to:
TBX-Free: A developmental stage oral thin-film strip designed to assist cigarette smokers in overcoming nicotine addiction. This product is holistic in nature, utilizing natural active ingredients to achieve effective outcomes.
TBX Vape-Free: A first-to-market oral thin-film strip developed to address nicotine addiction in vape users. This product, once testing is complete, will be the first of its kind, filling a critical gap in the market for addiction treatment specific to vape devices.
According to the CDC, approximately
“We’re proud to be at the forefront of addressing this urgent health crisis,” said Stan Ross, CEO of Digital Ally. “Pending the successful completion of Redwood’s final-stage clinical trial, we look forward to launching a product that could reshape how the U.S. approaches nicotine addiction.”
No sales or marketing of the product will occur until the clinical study concludes. However, Digital Ally and Redwood are preparing for full-scale distribution upon study finalization, ensuring the product can rapidly reach the market once approved.
About Digital Ally, Inc.
Digital Ally Companies (NASDAQ: DGLY) through its subsidiaries, are engaged in video solution technology, healthcare revenue cycle management, ticket brokering and marketing and event production. Digital Ally continues to add organizations that demonstrate the common traits of positive earnings, growth potential, innovation and organizational synergies.
For additional news and information please visit www.digitalally.com
Forward-Looking Statements
Statements made in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on management’s current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of today’s date. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s performance or achievements to be materially different from any expected future results, performance, or achievements. Forward-looking statements speak only as of the date they are made, and the Company assumes no duty to update forward-looking statements, except as required by law. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, some of which are beyond the control of the Company, including, but not limited to, the risks described from time to time in the Company’s periodic filings with the U.S. Securities and Exchange Commission, including, without limitation, the risks described in the Company’s 2024 Annual Report on Form 10-K under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (as applicable). These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and the Company undertakes no duty to update this information.
For Additional Information, Please Contact:
Stanton E. Ross, CEO at (913) 814-7774
FAQ
What is the new distribution agreement between Digital Ally (DGLY) and Redwood Scientific?
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