NJOY LLC 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.
“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 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 Teitelbaum’s Homewood Capital. 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 Nov. 15, 2017. 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.