E-Cigarette maker Juul Labs Inc. has recently raised USD 325 Million in an equity and debt offering to push its global impact in the alternative cigarette market. Altria Group Inc. (NYSE: MO) owns 35% of Juul Labs has continued to focus on expansion beyond the United States.
Recently, American regulators have increased scrutiny over e-cigarette products due to its increased popularity among the youth. The company has launched products in the Philippines, Indonesia and South Korea surrounding the same time that San Francisco was approved for a ban of sale and distribution of e-cigarettes until manufacturers attain approval from the FDA.
Last month in July, a U.S. federal court had ordered e-cigarette companies to apply to the FDA within the next 10 months to remain in the market instead of the anticipated 2022.
Last year, Altria CEO Howard Willard said in a statement, “We are taking significant action to prepare for a future where adult smokers overwhelmingly choose non-combustible products over cigarettes by investing $12.8 billion in Juul, a world leader in switching adult smokers. We have long said that providing adult smokers with superior, satisfying products with the potential to reduce harm is the best way to achieve tobacco harm reduction.”
JUUL Labs was founded by former smokers, James Monsees and Adam Bowen, with the goal of improving the lives of the world’s one billion adult smokers by eliminating cigarettes. Today, JUUL Labs is a thriving team of scientists, engineers, designers, supply chain experts, customer service and business professionals who believe that design, technology and out-of-the-box thinking are the keys to creating the most satisfying alternative to cigarettes.