Juul raises US$700 million in debt from investors: source

Juul raises US$700 million in debt from investors: source

Juul Labs Inc has raised more than US$700 million in convertible debt from investors to fund its operations, a source familiar with the matter told Reuters, as the e-cigarette maker battles growing regulatory scrutiny on vaping.

FILE PHOTO: Juul brand vape cartridges are pictured for sale at a shop in Atlanta
FILE PHOTO: Juul brand vape cartridges are pictured for sale at a shop in Atlanta, Georgia, U.S., September 26, 2019. Picture taken September 26, 2019. To match Special Report JUUL-ECIGARETTE/ REUTERS/Elijah Nouvelage/File Photo

REUTERS: Juul Labs Inc has raised more than US$700 million in convertible debt from investors to fund its operations, a source familiar with the matter told Reuters, as the e-cigarette maker battles growing regulatory scrutiny on vaping.

Last week, Altria Group Inc said it booked a US$4 billion charge in the fourth quarter on its investment in Juul.

The company has recorded US$8.6 billion in impairments as of 2019, since it took a 35per cent stake in Juul for US$12.8 billion in December 2018.

The Wall Street Journal had first reported the news.

(Reporting by Dania Nadeem in Bengaluru; Editing by Vinay Dwivedi)

Source: Reuters

Bookmark