NewAge Inc (fka NBEVQ) (NBEVQ)

[NewJerichoMan]

Did they own the building or is it a form of financial engineering?

They owned the building. Prior to the sale, all debt against it had been extinguished. Free and clear. The sale netted like a $4M gain. That is the money they are using to launch all these new products.

That $4M saved us a lot of dilution. Shows management's interests are aligned with shareholders. Also shows the Lebon's are "all-in" as well.

The monthly nut is $52K per month or like $8 per square foot, which is reasonable. The building has excess land beside the building which can likely be developed. The Samsonite heir is the purchaser and he is a developer, he'll likely do what he does and develop something next door.

Specifically the preferred shares which convert to common shares at 1 preferred to 8 common shares.

The preferred were in place prior to the purchase of Xing. The preferred A's have been retired (Neil Fallon did it upon uplist). The preferred B's were reportedly converted as well. NUWA could not convert all at once because they could never hold more than 10% of the pool at any time.


As of today, we have one class of shares, no preferreds - clean cap structure. From a shareholders' point of view, this is inviting.

The downside of paying for all your $hit with equity is apparently sometimes the grantees (I'm speculating Coco/Maverick) aren't "all-in" on the three-year plan (build it up and sell it off) and want out the door immediately.