NewAge Inc (fka NBEVQ) (NBEVQ)

[InvestforLTerm]

Joe,

Thank you very much for the education. Here are the flaws in your logic however:

1) This space is not exactly full of high performers which lends itself to highly accretive acquisitions. It is not the mature beer business where you buy the company, close the plant and roll it into the existing infrastructure.

2) If you listened to the CEO on the recent podcast, he said "we looked at 60 potential acquisition targets, and closely at 30" and turned them all down. Taking into account Willis' history of exaggeration, say they look at half of each.

The point is there is no low hanging fruit out there.

3) Even if the targets do exist, you assume the seller's are all idiots and these become accretive more or less from day one. History shows most acquisitions fail to meet the goals laid out.

Check out ECIG's track record of acquisition as a recent case in point.

4) Even if the targets do exist AND they can be attained at some reasonable value there is going to be massive dilution associated with the roll up strategy as there is no way to raise the funds without an equity component.

Your $400 mn. and share price targets is just not a realistic scenario unfortunately.