On March 1st, the American e -cigarette media Vaping360 analyzed why Opi Asia acquired NJOY. The following is the full text:

Opi Asia Group is negotiating to acquire NJOY. NJOY is the only independent e -cigarette company with FDA -authorized equipment. If the acquisition occurs, Opiia will also strip it off its 35% shares in Juul Labs. The Wall Street Journal first reported the incident first.

Opi Asia is a manufacturer of Monbo cigarettes. Except for JUul's ownership, it has no influence in the e -cigarette market. If Ozya wants to buy NJOY, there will be no FDA -authorized electronic cigarette products that are not a large tobacco company.

VUSE is owned by RJ Reynolds/British American Tobacco, Logic is owned by Logic.

NJOY hired financial experts to provide potential sale suggestions for the company last year. At that time, the company believed that it was worth $ 5 billion, but the Wall Street Journal stated that the current discussion involves a starting point of $ 2.75 billion.

Why does Opi Asia want NJOY?

NJOY is very attractive to buyers, because it has two electronic cigarette equipment that has been authorized by FDA -one -time NJOY DAILY and smoke -based NJOY ACE. ACE is the only modern electronic cigarette authorized by FDA. If NJOY gets the financial influence of increasing production and expanding distribution, it may be able to compete with Jum Labs's Juul and Vuse Alto.

NJOY is currently only about 3%of the convenience stores/gas stations in the e -cigarette market. But Opi Asia -the largest cigarette manufacturer in the United States, with rich distribution resources and cash, can eliminate production challenges.

Opi Asia currently has a 35% shares of Juul Labs. It acquired the company at a price of $ 12.8 billion in 2018 -the company's valuation was $ 38 billion. In September last year, when JUul's value fell below 10% of its original labels, Opi Asia exercised its right to withdraw the rights agreement with Jum Labs.

According to the Wall Street Journal, Ochiya now said that JUUL is worth $ 714 million.

If Ozya acquires NJOY -or if it acquires another electronic cigarette company or starts to produce its own electronic cigarettes -it may be forced to peel off its shares at JUUL to satisfy antitrust concerns.

In the case of the Federal Trade Commission's current appeal, Ozya and Zhuer have been accused of anti -competition by the Federal Trade Commission.

NJOY saved the electronic cigarette in 2010

NJOY, Inc. was founded by lawyer Mark Weiss in Arizona, and began selling the first generation of electronic cigarettes in 2007. After the FDA recorded the electronic cigarette label as an unprecedented drug/transportation device and began to confiscate the products from China, the Weiss and other manufacturers started the struggle. vitality.

NJOY, Inc. applied for bankruptcy in 2016. The company became NJOY LLC through reorganization. The hedge fund Mudrick Capital Management held a majority equity and has been operating NJOY since then.