DENVER, CO / ACCESSWIRE / April 3, 2019 / New Age Beverages Corporation (NASDAQ: NBEV), the Colorado and Utah-based organic and natural beverage company intending to become the world's leading healthy beverages and lifestyles company today announced that it has closed on the sale of its Japanese office building, with a net price for sale of the asset of $55 million.
KEY HIGHLIGHTS:
New Age completed a reverse triangular merger with Morinda Holdings, Inc. on December 21, 2018. As part of that acquisition, New Age agreed to pay the shareholders of the business up to $25 million from the proceeds of the sale of their Japanese office building. The sale has now closed with a final sale price of $55 million. After the $25 million payment to the Morinda shareholders, payoff of the $2.9 million mortgage, fees and other transaction costs, the net additional benefit to New Age is expected to exceed $12 million.
New Age reported $42 million on its balance sheet with de minimis debt in its most recent 10K filing. The Company expects to utilize the proceeds from the sale for organic growth of its core portfolio, investment behind its CDB portfolio of products, and for incremental working capital flexibility.
Greg Gould, Chief Financial Officer for New Age commented, "The sale of the Japanese office building far exceeded our upside estimates, and creates an additional benefit to the Company of around $12 million. Coupled with the new $25 million credit facility recently emplaced with East West Bank, and the previous cash balance of more than $42 million, it puts New Age in a very strong financial position."
About New Age Beverages Corporation (NASDAQ: NBEV)
New Age Beverages Corporation is a Colorado and Utah-based healthy beverage company dedicated to inspiring, educating consumers to live healthy. The Company is the only one-stop-shop of healthy beverages and includes the brands Tahitian Noni, TeMana, Búcha Live Kombucha, XingTea, Coco-Libre, Marley, and others. New Age competes in the growth segments of the >$1 trillion-dollar non-alcoholic beverage industry. The Company's brands are sold across all 50 states within the US and in more than 60 countries internationally across all channels via a hybrid of direct-to-consumer and traditional distribution and route-to-market systems.
The Company operates the websites www.newagebev.com, www.morinda.com, www.newagehealth.com, www.mybucha.com, www.xingtea.com, www.drinkmarley.com, and www.cocolibre.com.
New Age has exclusively partnered with the world's 5th largest water charity, WATERisLIFE, to end the world water crisis with the most innovative technologies available. Donate at WATERisLIFE.com to help us #EnditToday.
Safe Harbor Disclosure
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statements that express the current beliefs and expectations of management, including but not limited to statements related to the Company's future growth and expansion in China, Japan and other Asian markets. Any statements contained herein that do not describe historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results, performance and achievements to differ materially from those discussed in such forward-looking statements. The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date they were made. The Company undertakes no obligation to update or revise forward-looking statements, except as otherwise required by law, whether as a result of new information, future events or otherwise.
For investor inquiries about New Age Beverages Corporation please contact:
Media:
Desiree Rosa
MULTIPLY
Tel: 202-292-4566
Investor Relations Counsel:
Cody Slach, Liolios Group, Inc.
Tel 949-574-3860
New Age Beverages Corporation:
Greg Gould
Chief Financial and Administrative Officer
Tel 303-289-8655
SOURCE: New Age Beverages Corporation
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