NJOY, a maker of e-cigarettes, has raised $70 million from Brookside Capital and Morgan Stanley Investment Management, building on early investments from Sean Parker, Peter Thiel and Douglas Teitelbaum, according to TechCrunch.
The single-use e-cigarettes come in packs of three, and apparently have the highest nicotine content among mainstream e-cig brands. The vaporization method of smoking has been lauded as safer than typical cigarettes, although NJOY is currently in the midst of a class-action lawsuit from a California man who claims the company’s marketing implies e-cigarettes can help smokers quit the habit altogether. NJOY currently owns about 40% of the e-cigarette market.
Morgan Stanley has previously been vocal about the growth of the e-cigarette market, as analyst Dan Adelman estimated that the devices took the place of 1.5 billion cigarettes last year, and 600 million the year before. Despite their growing popularity, e-cigs still comprise only about 1% of total U.S. cigarette volume.