NJOY, Inc. Successfully Completes Financial Restructuring
Scottsdale, Arizona (PRWEB) February 23, 2017 -- NJOY, LLC (“NJOY” or the “Company”) announced the acquisition of the assets of NJOY, Inc. in connection with NJOY, Inc.’s financial restructuring.
In conjunction with this acquisition, NJOY completed a $35 million equity capital raise, and is now a well-capitalized entity with no debt and substantial liquidity. NJOY is committed to offering the adult smoker the very finest alternatives to smoking and building upon its position as the pioneering independent electronic cigarette brand. With its strong balance sheet, NJOY is now poised to work with its distribution partners to build upon its’ position as the leading independent brand, and will continue to innovate the advancement of the finest electronic nicotine delivery products. The total capital investment in NJOY LLC, to support the acquisition and to capitalize the company, was $35 million, the majority of which came from lead investor Mudrick Capital Management.
“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. I am excited to have the full support of our equity owners. 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. I am, therefore, particularly excited, on a personal level, to have the opportunity to represent the great NJOY brand.”
In addition to its commitment to provide the best products in thousands of retail locations nationwide and online at http://www.njoy.com, NJOY’s core mission is to offer millions of adult smokers satisfying, non-combustion alternatives to traditional combustion tobacco products.
In addition, the Company is fully prepared to operate within the framework of the FDA’s recently enacted final regulations, and has already begun the process of pursuing required premarket tobacco product authorizations.
After completing its restructuring, NJOY is majority-owned by Mudrick Capital Management, a multi-billion dollar investment firm which specializes in corporate turnarounds, and Mr. Teitelbaum’s Homewood Capital. Mr. Teitelbaum has previously led successful turnarounds, including Barneys New York, The Planet Hollywood Resort and Casino Las Vegas, Telcove, Inc. and Island One Int’l.
The United States Bankruptcy Court for the District of Delaware entered an order approving the transaction on November 15, 2016 for case number 16-12076 (CSS). NJOY’s legal advisor in connection with the restructuring has been Kirkland & Ellis LLP. Batuta Advisors LLC was the Company’s financial advisor for the restructuring. Mudrick Capital Management was represented by Neal, Gerber & Eisenberg LLP.
About NJOY, LLC:
NJOY, LLC is an independent electronic nicotine delivery system company. In February 2017 it acquired the assets of NJOY, Inc., the pioneering electronic cigarette company, founded in 2006. NJOY, LLC’s products include the Daily disposable electronic cigarette, the Pre-Filled Tank (a closed-system vape tank), the Compact Battery convenience vaping system, the King disposable electronic cigarette, and other electronic nicotine delivery system products. NJOY, LLC’s products are available in all 50 states and online at http://www.njoy.com.
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Erin Dullea, NJOY, LLC, http://www.njoy.com, +1 (844) 414-1204, [email protected]
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