New Age Beverages (NASDAQ:NBEV) stock was on the rise Thursday for a couple of different reasons.
Part of the big push to New Age Beverages stock comes from some news announced yesterday at the Liolios Gateway Conference in San Francisco. During this conference, the company announced that it is testing out a cannabidiol (CBD) beverage in Colorado.
Why does that matter? Well to put it simply, marijuana stocks are taking off as more investors are drawn into the market. CBD is a byproduct of marijuana that doesn’t contain the active chemicals that make weed a psychoactive drug. However, there is still some controversy surrounding its use.
“We are gauging receptivity here in the local market to have the understanding of how consumers are responding before launching anything nationally,” Jay Barrow, Head of Marketing at New Age Beverages, told Bloomberg. “It is still a little bit of a touchy space, as you can imagine. There’s still a little bit of evolution that the consumers need to go through to register what CBD is and how it is different from marijuana.”
Another factor that could be affecting New Age Beverages stock today is a recent 8-K filing with the U.S. Securities and Exchange Commission. In this filing, the company says that it will be delaying its annual shareholder meeting to Oct. 23, 2018 from its previous date of Sept. 14, 2018.
New Age Beverages says that the reason for the delay is that it wants to add another proposal for shareholders to vote on. This proposal is approval to increase its authorization of common stock to 100,000,000 shares of NBEV common stock.
NBEV stock was up 11% as of Thursday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.
