Altria Group IncMO-backed Juul Labs Inc is reportedly in talks with top-notch investors, including Nick Pritzker and Riaz Valani. They are considering putting money into the company to potentially stave off a bankruptcy filing.
Messrs. Pritzker and Valani were early investors in Juul, have been longtime directors, and are among the company’s largest shareholders.
The deal hasn’t been finalized, and Juul could decide not to pursue it, Wall Street Journal reported.
Juul hired bankruptcy advisers Kirkland & Ellis and Alvarez & Marsal in June after the FDA banned Juul products on U.S. shelves, citing a lack of evidence demonstrating their overall safety.
In a statement to the WSJ, Juul said it continues to explore several strategic options to secure its business and address the impact of the FDA’s stayed order “as we fight to preserve our mission of transitioning adult smokers away from cigarettes while combating underage use.”
