New Age Beverages Announces Offering Of Common Stock
With the rise of both medicinal and recreational cannabis legalization across the U.S., cannabis players should continue to increase magnitude in the stock market.
New Age Beverages Corp. (NASDAQ:NBEV) announced Thursday it intends to offer shares of common stock in an underwritten public offering. Per the release, the company plans to utilize the funds for working capital and potential acquisitions.
“The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.”
Why It’s Important
While more states begin to legalize the product, more companies are likely to enter the space.
New Age is considered one of the top 60 largest beverage companies in the world, according to the release. This additional funding would help in leveraging the increasingly competitive market.
However, some are skeptical of the rapid growth in the space. New Age Beverages unveiled a cannabidiol-infused drink in September and saw shares triple in price.
"This technology is very difficult. They’re just basically making announcements, doing trials, talking about doing things, but there’s no sales yet and there’s no proof of product yet, so I’d be very careful with those names," 420 Investor Alan Brochstein told Benzinga last month.
The offering is made pursuant to a registration statement on a previously filed S-3 form with the U.S. Securities and Exchange Commission. Roth Capital Partners and A.G.P. Alliance Global Partners will serve as joint book-runners for the offering.
Shares fell more than 11 percent after hours to $4.15.
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