Juul discusses potential bailout with two of its biggest investors – WSJ

October 24 (Reuters) – Joule Labs Inc. is in talks with two of its investors about a bailout that could help them avoid bankruptcy filings, the Wall Street Journal reported on Monday, citing people familiar with the matter. Told happened.

Hyatt Hotels heir Nick Pritzker and California investor Riyaz Valani are looking to fund the e-cigarette maker’s operations and cover near-term legal liabilities, reports Told,

According to the report, the bailout will help Juul stay in business and pursue dispute resolution with federal regulators about whether its products can remain in the US market.

The US Food and Drug Administration (FDA) banned the sale of Joule’s e-cigarettes in June, in a major blow to the once high-flying firm, whose products have been linked to a boom in teenage vaping. . The FDA’s order was later temporarily halted. read more

In a statement to the WSJ, Juul said it continues to explore a number of strategic options to secure its business and offset the impact of the FDA’s moratorium order “as we combat under-age use in adults.” Fight to preserve our mission to wean smokers away from cigarettes.”

In July, Juul said it was in the early stages of exploring several options, including financing options. read more

Juul did not immediately respond to a Reuters request for comment, while parent Altria Group (Mon.N) Question adjourned to Joule.

Reporting by Jubi Babu in Bengaluru; Editing by Devika Shyamnath

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