Is NJoy Really Back From Bankruptcy?
If you’ve followed the vaping scene in the USA for any period of time, then you’ve probably heard the tragic tale of a vaping company called NJoy. The company got its start selling disposable cigalikes in convenient stores, and is probably most well-known for ‘the Sottera decision,’ in which the U.S. District Court ruled (in favour of Sottera, as NJoy was called back then) that the FDA could not regulate vaping products as ‘unregulated drug delivery devices.’
Obviously, after this decision, the FDA began the process of regulating vaping products as tobacco products… but NJoy’s path didn’t necessarily lead to greener pastures.
The company made a stab at the gourmet E-liquid market, but failed to grab a secure spot. Between trouble at convenient stores and failing to find its niche with E-liquids, NJoy ran into trouble and declared bankruptcy last year.
But now – it looks like NJoy is going to be back in business, after some investments that have left them without debt, and a restructuring plan that will enable them to hit the market running.
NJOY, Inc., has officially been acquired by NJOY, LLC. The new company has raised quite a bit of capital equity ($35 million worth!), most of which came from an investment firm named Mudrick Capital Management.
This firm specializes in corporate turnarounds, and seems dedicated to revitalizing the brand.
Not only is the company prepared to re-enter the marketplace without any debt – but they are also poised to operate within the framework of the FDA’s new E-cig regulations. Spokespeople for NJoy have even said that the company has already started the process of pursuing premarket tobacco authorizations… an essential step to moving forward with the new regulations in place.
Here’s a statement that was made by the Douglas Teitelbaum, the Chairman and CEO of NJOY, LLC.
“Today marks a fresh financial start for the NJOY brand. With the completion of this acquisition and capital raise, we now have ample liquidity and can focus on delivering for our customers.”
What Did We Think Of This Story?
NJoy has been responsible for some pretty awesome vaping products thus-far. They’ve also put out some seriously delicious E-liquids, and were one of the first major brands in the USA to get serious attention as a vaping company.
They’re also close to our hearts as activists who challenged the ability of the FDA to regulate vaping products as drug delivery devices… and won.
In the end, we can’t help but to be really thrilled about this new development. We are also thrilled that NJoy is going to hit the ground running in regard to the new FDA regulations. They’re poised to make serious waves, and seem dedicated to the task of keeping vaping alive in the United States. They’re definitely a big player as far as US companies are concerned, and we are excited to see how they develop after their restructuring.
If you’re interested in checking out any NJoy products, you can visit their new and improved website here: https://www.njoy.com
We took a look at it and were pretty impressed. We will no-doubt be on the lookout for new products and e-liquids as they come out, and will be excited to see what NJoy comes up with in regards to the new FDA regulations. Some of them are going to be challenging to keep up with – but we have confidence in NJoy, and will be wishing them the best on this next and latest chapter of their journey.
We vapers and vape supporters need to stick together these days. These are uncertain times for vaping – and if we want the habit to stick around for the long-term, we all need to do what we can to support companies like this… companies dedicated to providing consistency, quality, and innovation.