NJOY Raised Whopping $70 Million Investment
NJOY has managed to have a huge turnaround at their latest fundraiser with the goal to raise investment capital to try and gain ground in the electronic cigarette market. Brookside Capital and Morgan Stanley Investment Management we’re reported as being the two main parties in the deal.
Craig Weiss, CEO of NJOY, was quoted in the press saying their corporate mission was to make cigarette usage obsolete and while explaining what he believes makes NJOY superior from the rest. He pointed out the company as being leading developers and researchers in the field with various patents on their brand products.
Just a year ago, NJOY received no less than another $75 million from another group of investors, led by infamous Napster founder Sean Parker. Large deals and market moves from both interested investors and the watchful tobacco giants seem to be happening at a much faster pace in the last couple of years. All taken into consideration, NJOY has amassed over $145 million dollars in funding, and it’s hard to tell what this all means for NJOY’s growth or the e-cigarette market in general.
Last year was no stranger to big acquisitions. Green Smoke e-Cigarettes was purchased for $110 million by Altira Group, parent company of Phillip Morris. SKYCIG was acquired by Lorrillard Tobacco Company, the third largest tobacco manufacturer in the US and a few months’ prior, Blu e-Cigarettes was purchased by Greensboro, manufacturer of famous Newport brand cigarettes. It’s no secret that the tobacco industry has decided to move in and buy their share in the new-age market.
Some are not big fans of tobacco companies coming into play for the obvious reasons of the health issues caused by cigarette smoke and nicotine addiction. Many have lost so much and see e-cigarettes as a solution. This brings forth the question of how the tobacco industry will face the competition and market loss electronic cigarettes will bring to their existing industry. Will they try to promote the healthier alternative, or fund faulty studies to scare the market again?
The good news is, that does not seem to be the case. All these giants have shown signs of wanting to expand internationally and present strong business plans for developing growth. Right now, the industry is walking around egg shells making sure they don’t market e-cigs in an incorrect fashion that would cause conflict with the FDA. At this time, the product cannot be marketed and a cessation device until all testing is complete. Nicotine gums and inhalers had to themselves pass many years of testing before regulation could be complete.
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