This Monday, Altria Group, one of the largest American beverage and tobacco companies, announced the purchase of electric cigarette startup NJOY Holdings for $250 million.
Altria, which already has brands such as Marlboro or AB Inbev in its portfolio, decided to make this million dollar investment in a vaping company, dAfter losing large sums of money to electric cigarette company Juul Labs buying 35% of the shares.
Last year, Juul Labs faced allegations of facilitating underage vaping, so not only were its products banned, but there were appeals to the court, where an inspection by the US Food and Drug Administration (FDA) agency was authorized.
With the new agreement between Altria Group and NJOY Holdings, current shareholders also expect $500 million in cash, which is in line with some products. The news benefits the electric cigarette maker, which managed to bounce back from bankruptcy in 2017.
NJOY Holdings is one of the few FDA-cleared companies and its products are capsule-based disposable cigarettes sold under the brand name NJOY Daily.
Other companies with the same characteristics have been fined by the FDA for failing to comply with due process and selling products in the United States without proper authorization. Manufacturers such as BAM Group LLC, Great American Vapes LLC, The Vapor Corner Inc. and 13 Vapor Co, must pay a $19,192 fine for violating the law.
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Source: La Opinion
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