Demonstrating the potential business impact of the Trump administration’s proposed ban on flavored vapor products in the U.S., industry pioneer NJoy Holdings has changed plans for its upcoming funding round, reports The New York Times.
The company had previously been in talks to raise between $200 million and $400 million in equity. Now it is reportedly in talks to raise convertible debt on a yet to be determined amount. Convertible debt is generally easier to raise because it is considered a less risky investment.
Accounting for 11.6 percent of U.S. e-cigarette sales in August, NJoy generates more than 90 percent of its sales from nontobacco flavors.
NJoy expects its revenue to drop 15 percent to 20 percent after the ban takes effect.
Nonetheless, company officials believe the crackdown could be good for NJoy in the long term because it would eliminate competition from unregulated products.
NJoy plans to file applications for all of its products early next year.