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BREAKING NEWS

Juul raises over $750 million in expanded funding round

Juul raises over $750 million in expanded funding round
FILE PHOTO: A sign advertising Juul brand vaping products is seen outside a shop in Manhattan in New York City, New York, U.S., February 6, 2019. REUTERS/Mike Segar -
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Mike Segar(Reuters)
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(Reuters) – E-cigarette maker Juul Labs Inc, which is facing regulatory scrutiny in the domestic U.S market, has raised $785.2 million (639.6 million pounds) in an equity and debt offering as it looks to expand globally, a regulatory filing showed.

A person familiar with the fundraising said the Friday’s filing was an expansion of the offering from earlier this month, in which the company said it had raised $325 million, and is intended to “bolster the company’s balance sheet as it continues to grow worldwide.”

The company sold convertible debt in a bridge financing which was less time consuming than an equity-financing round, the person familiar with the matter told Reuters.

Juul, in which Altria Group Inc <MO.N> has a 35% ownership stake, has been launching its products in international markets like South Korea, Indonesia, and Philippines while facing intense scrutiny from regulators in the U.S. over its e-cigarettes which are widely popular among teenagers.

On Thursday, Reuters reported that the Federal Trade Commission was investigating the marketing practices of the San Francisco-based company, citing a source. (https://reut.rs/2zzDTZr)

(Reporting by Soundarya J in Bengaluru and Chris Kirkham in San Francisco; Editing by Shailesh Kuber)

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