NewAge Inc (fka NBEVQ) (NBEVQ)

[treit2002]

And exactly way is an at the market shelf offering a bad thing for a company?

NBEV is simply giving itself a mechanism -- along with announced debt facilities -- to raise capital if and when needed. The possibility that it may need $50M in the future for inventory and marketing or for an acquisition tells you how far the company's come from when they were forced to do below market share offerings for fractions of this amount.

The fear of dilution comes from forced below market offerings done from a defensive position. In that case they dilute both % of share ownership and more importantly earnings per share. When new capital is deployed well -- and that's the only reason to raise new capital, if not vitally needed -- then eps is improved; it is accretive to value.

This is how all small companies that become large companies become large companies.