Earlier this year, Juul Labs quietly spun out of vaping company Pax Labs and quickly catapulted up the charts to become the top e-cigarette producer on the market. Now, the San Francisco-based company is raising $150 million in its first financing as an independent company.
The separation allowed Juul to focus on people seeking an alternative to cigarettes, while Pax, which lets users pack their own loose leaves, exists in a hybrid world between nicotine and various sorts of plants.
Last week, Juul hired Kevin Burns from Chobani to be CEO.
And now the company is raising money. It's already reeled in $111.5 million from 23 investors, according to a filing with the SEC on Tuesday. In what's described as a convertible note, the company still has $38.5 million left to raise.
A Juul spokesperson confirmed the filing but declined to provide additional details.
While they've formally separated, the relationship between Pax and Juul is complicated. Tyler Goldman became CEO of Pax in August 2016 and held the top position at both companies after the split. With the Burns announcement on Dec. 11, Juul said that Goldman "intends to pursue new entrepreneurial opportunities."
Goldman has also left Pax. That company, which expects to announce a new CEO soon, declined to comment for this story.
James Monsees and Adam Bowen, the co-founders of Pax, have left that company as well: Monsees' LinkedIn page says he left Pax in July, while Bowen's profile indicates he left a month earlier. Both are are now top executives and board members at Juul.