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Juul Labs said to seek $1 billion in funding

Illustration of a woman puffing out dollar signs after vaping.

Illustration: Lazaro Gamio/Axios

Juul Labs, the e-cigarette company, is seeking to raise around $1 billion, according to Bloomberg, citing people familiar with the matter.

Why it matters: Despite an array of legal issues, the company is still hoping to take advantage of the burgeoning e-cigarette market, which has grown, as traditional tobacco products have waned.

  • E-cigarette unit sales grew by 46.6% in the span of 12 months last year, according to a Center for Disease Control and Prevention study.

Details: Juul is working with Jefferies Financial Group on the effort, per Bloomberg.

Catch up fast: Last Fall, Juul Labs said it had secured enough new financing to avoid bankruptcy.

  • The financial lifeline came from Hyatt Hotels heir Nick Pritzker, and investor Riaz Valani.

Context: Earlier this year, Marlboro parent Altria exited its stake in Juul.

  • Altria's shares in Juul were valued at about $250 million in December, down from the $12.8 billion it was valued in 2018 when it had acquired a 35% stake.

Jefferies declined to comment. A Juul representative couldn't immediately be reached for comment.

Editor's note: The story was corrected to show $12.8 billion as the 2018 value, not $12.8 million.

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