New Age Beverages Corp (NASDAQ: NBEV) is having an overwhelmingly rough start to the trading session this morning after closing the week off on tremendous gains last week. Today’s declines are ultimately the result of an ATM Offering that was disclosed via SEC filing this morning. Today, we’ll talk about:
- The offering;
- what we’re seeing from NBEV as a result; and
- what we’ll be watching for ahead.
NBEV Falls On Offering News
As mentioned above, New Age Beverages is having an incredibly rough start to the trading session this morning after the company announced an offering. In an SEC filing issued early this morning, the company disclosed an At the Market Offering Agreement entered into with Roth Capital Partners. Under the terms of the agreement, the company plans on offering up to an aggregate of $50 million in shares of NBEV common stock.
The news comes after NBEV soared toward the end of the week last week. Ultimately, the comapny is the center of acquisition chatter, suggesting that Coca-Cola is interested in taking the company over. Moreover, late last week, the company announced that it would be unveiling its CBD drink portfolio relatively soon, leading to further excitement. Nonetheless, with today’s news of the offering, excitement has fizzled and fear is setting in as the stock falls dramatically.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of NBEV, the news proved to be overwhelmingly negative. After all, a $50 million ATM offering means that soon enough, investors will feel the pain of dilution. So, it comes as no surprise that upset investors are sending the stock tumbling for the bottom. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (9:39), NBEV is trading at $4.87 per share after a loss of $1.28 per share or 20.81% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a clsoe eye on NBEV. In particular, we’re interested in following the news surrounding the offering, the potential takeover by Coca-Cola and the company’s CBD drink portfolio. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!