Founded in 2006 and based in Scottsdale, Arizona, NJOY manufactures and distributes electronic cigarette products online and through a network of retails stores, convenience stores, and dealers in the United States. NJOY has one of the largest independent U.S. distributions and possesses market-leading positions with blue-chip retailers, including Walgreens, 7-Eleven, and Speedway.

Events Leading to Bankruptcy: Senior management was distracted by 1) the failed launch of its Kings 2.0; 2) declining sales; 3) disputes over intellectual property; 4) Liquidity constraints; and 5) unexpected compliance costs for the FDA. Having down a financing through Morgan Stanley at a post-money valuation of $1.0 billion, NJOY hired Barclays Capital as investment advisor in January 2016 to explore a potential sale. After running two failed marketing processes in 2016, NJOY filed for Chapter 11, bringing CRC in to take over the investment banking process.

TRANSACTION HIGHLIGHTS

Sale of Assets: NJOY sold substantially all of its assets following an auction to a consortium of Homewood Capital, Mudrick Capital, and CGP Sottera Holdings for approximately $30.1 million on November 11, 2016.

Efficient Process: We advised the Debtor on an expedited §363 sale of the second largest E-Cigarette company.

• Strategic advice and valuation expertise resulting in a successful sale and optimal returns for investors.

• Conducted and expedited sale to ensure a fast-track process to maximize value to the Debtor.

• Conducted a transparent auction where the key assets were sold to the highest and best bidders where time and money were in short supply.