Juul Labs: SEC Launches Investigation

We’ve written about Juul Labs, and it’s relationship with deep-pocketed minority investor Altria before. Now we hear from a Wall Street Journal report that the SEC is taking an interest in one of the largest melt-down in a company’s value in recent memory. According to the WSJ “E-cig makers have until May 20 [2020] to submit to the FDA applications to have their devices approved for sale on the market”, but Juul may have problems getting the nod, even with Altria’s help.

As before, we remain unclear how the ongoing uncertainty at Juul will affect the two BDCs with exposure – the two BlackRock public BDCs : Blackrock Capital Investment (BKCC) and BlackRock TCP Capital (TCPC). Neither BDC has yet reported IVQ 2019 results, so our valuation and exposure data remains from the IIIQ 2019. We shall wait and see.