Juul's valuation took a big hit Thursday.
Since tobacco company Altria Group acquired a large stake in Juul Labs, the vape manufacturer has struggled with regulatory issues and has seen its valuation fall several times.
What Happened: Juul Labs cut its valuation from $12 billion to $10 billion, according to a company memo seen by Reuters.
Restructuring costs, regulatory issues and exiting several markets were cited as reasons for the cut.
Juul Labs CEO K.C. Crosthwaite said the valuation cut was not a surprise.
Related Link: Altria Takes $4.5B Writedown On Juul Investment
Why It’s Important: In December 2018, Altria Group MO paid $12.5 billion for a 35% stake in Juul Labs valuing the company at $38 billion.
Altria has taken several impairment charges over the years on the lower valuation.
Altria will report quarterly earnings Friday before the open and could discuss the valuation cut.
MO Price Action: Shares of Altria Group ended Thursday's session up 0.41% at $36.87.
Photo courtesy of Juul.
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