FILE PHOTO: Juul brand vaping pens are seen for sale in a shop in Manhattan in New York City, New York, U.S., February 6, 2019. REUTERS/Mike Segar
(Reuters) – U.S. e-cigarette maker Juul Labs Inc has raised $325 million in an equity and debt offering, as it looks to expand its global reach at a time of intense regulatory scrutiny in its home market.
In a regulatory filing on Monday, the company did not break out the ratio of equity and debt offered, but said the funds would not be used for mergers, acquisitions or exchange offers, or to pay executives, promoters or directors.
Juul, 35% owned by Marlboro maker Altria Group Inc, has focused its efforts on expanding outside the United States over the past year, as U.S. regulators increase oversight of e-cigarette products, blaming the makers’ aggressive marketing tactics for a rapid uptake in teenage vaping.
The company recently launched its popular USB flash drive-shaped products across Europe, South Korea, the Philippines and Indonesia and plans to expand into other markets.
Juul, along with other e-cigarette makers, is banned from selling its vaping devices in San Francisco, the city where it is headquartered.
The offering will also give Juul the capital it needs to comply with a U.S. federal order in July that stipulates that e-cigarette companies submit applications to the FDA to remain in the market within 10-months rather than an earlier deadline of 2022.
Altria shares were up about 1% in premarket trading.
Reporting by Siddharth Cavale and Aishwarya Venugopal in Bengaluru; Editing by Shinjini Ganguli