Juul raises $325m to fund global expansion of e-cigarette range
E-cigarette giant Juul has raised $325m (£268m) in an equity and debt offering as it looks to fast track its global expansion amid regulatory pressure in the US.
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Juul did not specify the ratio of equity to debt in the deal, but a source familiar with the matter told Reuters that the firm sold convertible debt in a bridge financing to bolster its balance sheet.
The vaping firm, which is 35 per cent owned by Marlboro cigarette manufacturer Altria Group, has been focusing its efforts on expansion outside the US as regulators increase their scrutiny in its home market.
The Food and Drug Administration (FDA) has given Juul and its competitors until May next year to submit applications to secure market approval for e-cigarettes.
More than 800 vaping companies have filed a lawsuit against the FDA in a bid to push back the deadline.
Juul suffered a major setback earlier this year when its home city of San Francisco passed a ban on e-cigarettes until they have gained FDA approval.
Read more: Up in smoke: San Francisco becomes first US city to ban sales of e-cigarettes
The latest funding comes roughly a year after Juul raised $1.25bn to fund its rapid growth, while Altria paid roughly $12.5bn in December for its stake in the company.
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