New Age Beverages’ initial public offering, estimated to be worth approximately $15 million, was four times oversubscribed due to an abundance of investor interest in the Denver-based distributor, CEO Brent Willis told BevNET on Friday.
On February 14, New Age Beverages began trading on the Nasdaq Capital Market under the symbol “NBEV” with an underwritten public offering of 4,285,714 shares of its common stock at a price of $3.50 per share. The offering closed on February 17, marking a successful introduction to the new market. The company first went public in 2014 selling stocks in the over the counter (OTC) market.
According to Willis, New Age Beverages’ transition from OTC to Nasdaq represents a shift to the big leagues of the stock market and brings with a chance to create a bigger and stronger financial foundation to grow the company and its brands.
“What you get with those exchanges is a different quality investor,” Willis said. “You get a long term investor, you get significantly more liquidity, and much more legitimate access to the capital markets. We felt that was important for what we wanted to do long term to really have the right financial foundation underneath the company.”
Willis said the OTC market was always a “stepping stone” for the company.
The decision to enter the capital market came after a successful year for the company, which formed under its current title when Bucha and XingTea inked a $20 million deal to merge last spring, with Willis taking the role of CEO. In October, New Age Beverages looped in Marley Beverage Company, taking the reins of the ready-to-drink coffee and relaxation drink brand’s sales, marketing, and distribution.
In January, New Age Beverages announced it had launched a new portfolio of private label, store-branded RTD teas, created for a North American convenience store operator with more than 3,000 stores. According to Willis, New Age Beverages was approached by the retailers due to the success of XingTea. The new line comes in five flavors and has been rolling out throughout the country since December.
The retailer has requested to remain anonymous, Willis said.
Although major mergers are largely responsible for the rapid rise of New Age, Willis said he sees the deals as creating a platform to generate organic growth among its brands.
“The New Age group has always had the right infrastructure and business foundations with the supply chain and national manufacturing network, and importantly its own DSD operations in a national DSD network,” Willis said. “As long as you’re marketing your products in the right way, and connecting with consumers, it’s a really strong model and a strong platform and different from any small beverage company out there.”