SCOTTSDALE, Ariz. -- NJOY LLC has acquired the assets of NJOY Inc. as part of the e-cigarette maker’s financial restructuring.
NJOY Inc., which was founded in 2006, declared bankruptcy last September, citing an accumulated deficit of $234.4 million and $16 million in accounts payable.
After completing a $35 million equity capital raise, NJOY is now a well-capitalized entity with no debt and substantial liquidity, the company said.
“Today marks a fresh financial start for the NJOY brand,” said Douglas Teitelbaum, chairman and CEO of NJOY LLC. “With the completion of this acquisition and capital raise, we now have ample liquidity and can focus on delivering for our customers.”
NJOY’s core mission is to offer adult smokers noncombustion alternatives to traditional tobacco products.
“As a former smoker who long ago switched to NJOY products, I sought to buy the company so that I might enable as many adult smokers as possible to make the switch I did,” Teitelbaum said. “I am, therefore, particularly excited on a personal level to have the opportunity to represent the great NJOY brand.”
After the restructuring, NJOY LLC, Scottsdale, Ariz., is majority owned by Mudrick Capital Management, a multibillion dollar investment firm that specializes in corporate turnarounds, and Homewood Capital, an investment firm founded by Teitelbaum. Teitelbaum has led turnarounds for Barneys New York, The Planet Hollywood Resort and Casino Las Vegas, Telcove Inc. and Island One International.
The U.S. Bankruptcy Court for the District of Delaware entered an order approving the acquisition on Nov. 15, 2016. NJOY Inc.’s legal adviser was Kirkland & Ellis LLP. Batuta Advisors LLC was NJOY LLC’s financial adviser, and Neal, Gerber & Eisenberg LLP represented Mudrick Capital Management.
NJOY LLC’s product lineup will include the Daily disposable electronic cigarette, the Pre-Filled Tank (a closed-system vape tank) and the King disposable electronic cigarette. Its products are available in all 50 states.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.