Days after exiting its stake in troubled electronic cigarette maker Juul, Altria announced a $2.75 billion investment in rival electronic cigarette startup NJOY.
The Marlboro maker gets full ownership of NJOY's e-vapor product portfolio, the Virginia company said Monday, including its pod-based e-vapor product ACE.
The agreement also includes an additional $500 million in cash payments contingent upon regulatory approval of some products by NJOY Holdings, based in Scottsdale, Arizona. Juul said Friday when Altria exited its stake that it now has"full strategic freedom" to pursue other partnerships."Juul faces significant regulatory and legal challenges and uncertainties, many of which could exist for many years," Gifford said.The company faced more than 8,000 lawsuits brought by individuals and families of Juul users, school districts, city governments and Native American tribes.
Amid the backlash of lawsuits and government sanctions, Juul dropped all U.S. advertising and discontinued most of its flavors in 2019.
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