425: AIR Study Shows Reduced Toxicants in Electronic Shisha

A new independent research study commissioned by AIR Limited demonstrates significantly reduced secondhand toxicant exposure from its OOKA charcoal-free shisha devices and electronic vaping products compared to traditional methods.

Summary

• AIR Limited announced results from an independent indoor air quality assessment comparing various tobacco and nicotine products.
• The study, published in Contributions to Tobacco & Nicotine Research, found that AIR's OOKA electronic waterpipe and electronic vaping products (EVPs) significantly reduce harmful chemicals and pollutants in indoor air.
• Specifically, the use of OOKA and EVPs nearly eliminated or entirely eliminated increases in carbon monoxide (CO), formaldehyde, benzene, and NNK (a tobacco-specific carcinogen) compared to conventional charcoal-heated waterpipes.
• Particulate matter (PM10 and PM2.5) levels were approximately 40% lower with OOKA use compared to conventional waterpipes, and EVPs produced the lowest levels.
• In multi-occupant scenarios, volatile organic compounds and polycyclic aromatic hydrocarbons were primarily observed during cigarette smoking, being negligible for other products.
• The findings support that indoor air in venues allowing OOKA and/or e-cigarette use has lower levels of chemical toxicants than those allowing conventional hookah and/or cigarette smoking.
• AIR is proceeding with a previously announced business combination with Cantor Equity Partners III, Inc. (CAEP), expected to be completed in the first half of 2026, resulting in AIR Global Limited listing on Nasdaq under AIIR.

Sentiment

Score: 8

Explanation: The filing presents highly positive research findings that validate the safety profile of AIR's key innovative products, which is a significant de-risking event for a company in the tobacco/nicotine alternative space. The progress on the Nasdaq listing further adds to the positive sentiment, indicating strategic execution.

Positives

• Independent research confirms significantly reduced secondhand toxicant exposure from AIR's OOKA electronic waterpipe and electronic vaping products.
• OOKA charcoal-free waterpipe nearly eliminated or entirely eliminated increases in carbon monoxide, formaldehyde, benzene, and NNK.
• OOKA use resulted in approximately 40% lower particulate matter (PM10 and PM2.5) levels compared to conventional waterpipes.
• Electronic vaping products produced the lowest particulate matter levels among all tested products.
• The study provides scientific evidence supporting reduced secondhand exposure risks for electronic tobacco and nicotine use.
• The findings validate AIR's innovative technology in potentially reducing indoor air toxicants while preserving social smoking traditions.
• The business combination with CAEP is progressing, with an expected Nasdaq listing in the first half of 2026.

Risks

• The anticipated timing and completion of the Proposed Business Combination may be delayed or not occur.
• AIR Global's proposed Nasdaq listing is subject to various conditions and may not materialize.
• Inability to satisfy closing conditions, obtain required shareholder and regulatory approvals, or meet applicable listing standards for the business combination.
• The occurrence of any event, change, or circumstances that could lead to the termination of the Business Combination Agreement.
• Potential legal proceedings against AIR Global, CAEP, AIR, or their subsidiaries following the announcement of the Proposed Business Combination.
• The risk that the Proposed Business Combination disrupts current plans and operations of AIR.
• The ability to recognize the anticipated benefits of the Proposed Business Combination may be affected by competition or the ability to retain management and key employees.
• Costs related to the Proposed Business Combination could be higher than expected.
• Changes in applicable laws or regulations could negatively impact the business or the combination.
• The SEC may not deem effective the registration statement on Form F-4.
• There may be additional unknown or currently immaterial risks that could cause actual results to differ materially from forward-looking statements.

Future Outlook

The company anticipates completing its business combination with Cantor Equity Partners III, Inc. in the first half of 2026, leading to the combined entity, AIR Global Limited, being publicly listed on Nasdaq under the ticker symbol AIIR. AIR plans to continue its growth strategy, market expansion, product innovation, and commercialization efforts, particularly for OOKA and other new technologies, leveraging its science program to minimize harm and maximize enjoyment.

Management Comments

• "The findings of this research study demonstrate that the use of AIRs OOKA, as well as the use of electronic vaping products, results in significantly reduced levels of harmful chemicals and pollutants in the air compared to cigarette or charcoal heated water-pipe hookah device use under the conditions tested." Stuart Brazier, CEO of AIR.
• "This peer reviewed research provides important scientific evidence about the reduced secondhand exposure risks associated with electronic means of tobacco and nicotine use and demonstrates how innovative technology like AIRs products can potentially reduce the level of chemical toxicants in indoor air environments while preserving social smoking traditions." Stuart Brazier, CEO of AIR.

Industry Context

This announcement positions AIR as a leader in tobacco harm reduction within the social inhalation industry, particularly with its OOKA charcoal-free shisha device. The positive research findings could bolster consumer confidence and regulatory acceptance for electronic alternatives to traditional hookah and cigarettes, potentially driving market share growth for AIR's innovative products. The ongoing business combination with a SPAC (CAEP) reflects a broader trend of private companies seeking public market access and capital for expansion, especially in evolving consumer goods and technology sectors.

Comparison to Industry Standards

• The study directly compares AIR's OOKA electronic waterpipe and electronic vaping products (EVPs) against conventional waterpipes and combustible cigarettes, showing superior performance in reducing toxicants and particulate matter.
• Conventional waterpipes and combustible cigarettes are presented as the industry standard for traditional tobacco and nicotine consumption, against which OOKA and EVPs demonstrate significant improvements in indoor air quality.
• The research highlights that OOKA and EVPs nearly eliminated or entirely eliminated increases in specific toxicants (CO, formaldehyde, benzene, NNK) that are priority targets for reduction in cigarette smoke by the World Health Organization.
• EVPs produced the lowest particulate matter levels, indicating a strong performance against other product categories in the study.

Legal Proceedings

• The forward-looking statements section mentions the risk of "any legal proceedings that may be instituted against AIR Global, CAEP or AIR, any of their subsidiaries or others following the announcement of the Proposed Business Combination." This is a general risk disclosure, not a specific ongoing proceeding.

Stakeholder Impact

• Shareholders (CAEP): Will vote on the business combination and will become shareholders of the combined entity, AIR Global Limited, listed on Nasdaq.
• Shareholders (AIR): Will become shareholders of the combined entity, AIR Global Limited, gaining public market access.
• Customers: May benefit from products with reduced toxicant exposure, potentially leading to increased adoption of OOKA and EVPs.
• Employees: The business combination could disrupt current plans and operations, but also offers growth opportunities. Retention of key employees is a risk factor.
• Regulatory Authorities: The research provides scientific evidence that could influence regulatory perspectives on electronic tobacco and nicotine products.
• Public Health: The findings suggest a potential for reduced secondhand exposure risks, contributing to public health discussions around harm reduction.

Next Steps

• AIR Global and AIR intend to file a Registration Statement on Form F-4 with the SEC.
• The SEC needs to deem the Registration Statement effective.
• CAEP shareholders will vote on the Proposed Business Combination at an extraordinary general meeting.
• The business combination is expected to be completed in the first half of 2026, subject to regulatory approvals and customary conditions.
• AIR Global Limited will be listed on Nasdaq under the ticker symbol AIIR.

Key Dates

Recommendation

The filing presents compelling positive scientific evidence validating the reduced harm profile of AIR's OOKA and EVP products, a critical factor for growth and regulatory acceptance in the evolving tobacco and nicotine market. This de-risks a significant aspect of the company's product strategy. Coupled with the imminent Nasdaq listing via a SPAC merger, which provides access to public capital and increased visibility, AIR is positioned for substantial growth. The company's existing market leadership with Al Fakher and Hookah.com, combined with innovative harm-reduction products like OOKA, suggests a strong competitive advantage. While risks associated with the business combination and regulatory changes exist, the positive product validation and public listing opportunity make this a strong investment prospect.

Keywords

AIR Limited, OOKA, Electronic Vaping Products, Shisha, Hookah, Tobacco Harm Reduction, Indoor Air Quality, Toxicant Exposure, Business Combination, SPAC, Nasdaq Listing, Cantor Equity Partners III, AIIR, Al Fakher