Juul reveals it raised $325M in capital, debt

Monday, 19. August 2019 13:59

Altria Group Inc.-backed ​Juul Labs Inc. said four entities participated in an equity and debt offering. The company based in San Francisco raised $325 million, according to last week's filing with the United States Security and Exchange Commission which was published on Monday.

The startup, which dominates the domestic electronic cigarettes market, wrote that the transaction isn't related to a business combination. It also revealed it won't use the funds for payment to executives or promoters. The tobacco manufacturer with headquarters in Virginia invested $12.8 billion in the vaping giant in December at a valuation of $38 billion to control 35%. Juul has faced regulatory hurdles over marketing and the use by minors, especially in California.

Altria surged 2.2% in premarket trading. Last week it ended at $46.48 per share or 9.62% above the four-and-a-half-year intraday low reached in January. It lost 23.8% in the past year compared to the 1.35% gain in the benchmark S&P 500 stock index.

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