NBEV Announces The Sale Of Its Japanese Office Building For $55 Million
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:
-- $55 million sale price exceeded high range of expectations. Less the $25
million owed to Morinda sellers and fees, net additional benefit to New
Age expected to exceed $12 million
-- Sale recently completed, with proceeds expected to be transferred to the
company imminently providing for additional working capital to drive
further international growth
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."
