E-cigarette maker Juul Labs hooks $700 million in convertible debt from investors



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E-cigarette maker Juul Labs hooks $700 million in convertible debt from investors

San Francisco-based e-cigarette manufacturer and a vaping industry giant, Juul Labs Inc. that spun off from Pax Labs back in the 2017s and evolved as a pioneer in the US vaping industry, resulting in a catastrophic cycle of tobacco addiction among the US teens, had raised more than $700 million from investors in convertible debts, a particular type of debt that could be converted in to common shares, a Wall Street Journal report published on Thursday, the 6th of February 2020, had unveiled citing a source close to the vaping industry Goliath who wished to remain anonymous.

Besides, as the electronic cigarette manufacturer that wraps nicotine salts from tobacco leaves to make one-time use cartridges, had still been duelling against a growing extent of regulatory scrutiny from US lawmakers and politicians including the US President Donald Trump, Marlboro maker Altria Group Inc., which held a 35 per cent stake in Juul Labs, said in a regulatory filing last week that it had to conceive a $4 billion in charges during Q4, 2019, over its investment on Juul Labs.

On top of that, Altria Group Inc. had booked a whopping sum of $8.6 billion in impairment since its $12.8 billion purchase of 35 per cent stakes in Juul Labs back in the December of 2018.