San Francisco-based Juul Labs Inc raised its assets by $785.2 million in a debt and equity offering, while the company is under regulatory investigation, showed in a regulatory filing.
In its pursuit of global expansion, the E-Cigarette manufacturer sold convertible debts in bridge financing. A person familiar with the fundraising said that it was less time consuming that a round of equity financing.
The source also cited that the filing aims to expand the company offering earlier this month, which initially raised $325 million.
These financial gains were targeted to “bolster the company’s balance sheet as it continues to grow worldwide,” according to the person familiar with the matter.
Juul Labs Inc., where Altria Group Inc (MO.N) owns 35% of shares, holds business as usual even though it faces legal scrutiny concerning marketing malpractice of the company.
Federal Trade Commission is investigating the company which has been launching products in international markets like the Philippines, South Korea, and Indonesia.
E-cigarettes are very popular among US teenagers; even under scrutiny, Juul holds a robust domestic market share.