NewAge Inc (fka NBEVQ) (NBEVQ)

[treit2002]

There's a lot to look forward to if you're long, and if what Mr. Willis says or indicates bears out:

1) A partnership with a supplier.
2) Immediate cost synergies incorporating Morinda; obvious revenue synergies
3) Announcements of new points of distribution including a big box and/or other new national retailer(s)
4) Cash flow positive Q4
5) >$350M revenue in 2019, with $20M EBITDA boost from Morinda

The deal does indeed seems transformational. There will be no more equity raises, as the Company will no longer bleed cash, and it has adequate cash and inventory to support solid growth, while increasing working capital over time. If growth opportunities beyond expectations arise, they are in a much better position to use new debt.

Does anyone really see any downsides to this deal. Who cares if Morida is an MLM outfit? Characterizing it a a Dollar Shave eCommerce, subscription model is apt. It's a ready made suitable distribution channel for the CBD products, likely with quite impressive margins. And it's Asia based; a platform they could not have developed organically for years. They didn't have years, because CBD is a new product category and they are perched well to capitalize.

So, I am surprised that yesterday's gains were given back; but, assuming execution, a lot of positives appear on the horizon, with financial results lagging just a quarter for each, While adding accretive finances and growth, as compared to anytime in its history, NBEV has de-risked itself from a balance sheet perspective, and from any operational shortfalls.

NBEV is a better buy now than any time in its history; at least any time its been over $2.00, imo.