Juul Labs cancels U.S. expansion, plans layoffs

The Wall Street Journal reported on Thursday that Juul Labs Inc is cancelling a planned expansion outside the United States and plans to lay off staff as a result.

The report said that the company had recently completed a refinancing of its secured debt, which gives the company more time to explore longer-term options.

In July, the once red-hot company was exploring several options, including financing alternatives, as it had to deal with lawsuits and a possible ban on sales of its e-cigarettes by U.S. health regulators.

After buying a 35% stake in the company, Marlboro maker Altria Group Inc has the option to be released from its non-compete deal with Juul almost four years later.

Altria had slashed the value of its stake in the e-cigarette maker to just $450 million, down from the original value of $12.8 billion, blaming a decrease in the chances of the U.S. health regulators approving the company's e-cigarettes.

The Food and Drug Administration put on hold its ban on sales of Juul's e-cigarettes in the United States in early July after the health agency banned its products for a period due to the failure to show that the company's products would be appropriate for public health.

The FDA said it would do an additional review of the company's marketing application.

Juul didn't respond immediately to a request for a comment from Reuters.