NewAge Inc (fka NBEVQ) (NBEVQ)

[Jockimo]

7 IPOs That Were Done the Right Way

http://investorplace.com/2017/03/ipos-done-right-invh-laur-revg-hlne-jnce-nbev-iipr/7/#.WMqGezsrJaQ

IPOs That Worked: New Age Beverages (NBEV)
IPOs That Worked: New Age Beverages (NBEV)Could this be the next Monster Beverage Corporation (NASDAQ:MNST), one of the best growth stocks of the last 50 years? Who knows but that’s what makes this kind of IPO so exciting.

A small deal by IPO standards, Colorado-based New Age Beverages Corp (NASDAQ:NBEV) came to market February 13 at $3.50 per share, raising net proceeds of $15.7 million including the exercise of its over-allotment by underwriters; it’s up 20%.

It has got a convoluted history that I won’t delve into, but at the end of the day, here’s what I like about New Age and its IPO.

First of all, it has two healthy functional beverage brands to sell to consumers — Xing Tea and Búcha Live Kombucha — and more than $50 million and $3 million in revenue and EBITDA respectively. Its CEO, Brent Willis, has a good track record of growing consumer-related businesses including two years at Cott Corporation (NYSE:COT), one of the world’s largest private-label carbonated soft drinks businesses.

Most importantly, it has got some really nice packaging, and while that might sound superficial, you can have the best-tasting product in the world but if it doesn’t stand out on the shelves, it soon will be off the shelves.

The first $4.5 million raised goes to repaying a promissory note involved in the merger between the owners of Xing Tea and Búcha Live Kombucha with the rest for growing revenues.

Make no mistake, this is a risky investment, but one speculative investors should take a look it more closely.