Juul Labs raising $150 million in debt after spinning out of Pax

Juul’s flat rectangular devices, shaped like USB sticks, hit the market in mid-2015 in addition to have surpassed similar devices coming from the tobacco giants. Bonnie Herzog, an analyst at Wells Fargo, wrote in a report last month, citing Nielsen data over the prior four weeks, which Juul controls 32.9 percent of the market, ahead of British American Tobacco at 27.4 percent in addition to Altria at 15.2 percent.

According to the Nielsen data, Juul has generated revenue growth of almost 700 percent to $224.6 million inside the past year, as of the November report. The total e-cigarette market expanded 40 percent to $1.16 billion.

Juul claims which its mission can be to eliminate cigarette usage by providing the 1 billion smokers worldwide “having a better alternative to combustible cigarettes.”

Ex-CEO Goldman told CNBC in October which the company was struggling to meet its mission because which was supply constrained. He said which every month the company produces 20 million products, including devices in addition to cartridges, however which which wasn’t producing pods, which contain the nicotine, quickly enough to meet demand.

“To achieve our mission, we definitely need to make sure which we have enough pods per device,” Goldman said. “If we’re not getting enough devices out into the marketplace, which means we’re not giving people the option to switch to Juul.”

A Juul customer, Staci Starnes, also told CNBC at the time which about six months after she started out using the product, she began experiencing problems with pods leaking into the device in addition to her mouth. Starnes, coming from Charlotte, North Carolina, said she’d switched to a different brand.

Given which Juul can be inside the nicotine business, controversy can be inevitable. A study earlier which month inside the American Journal of Medicine found which among young adults who didn’t smoke cigarettes, those who used e-cigarettes were more than four times as likely than non-vapers to start smoking traditional cigarettes within 18 months.

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