New Age Beverages stock is falling today after announcing a new public offering of its shares.
According to the company, it is offering a total of 12.90 million shares of New Age Beverages stock in this new public offering. New Age Beverages (NASDAQ:NBEV) says that the pricing of this offering will have it selling the New Age Beverages stock for $3.50 per share.
That share price is the rub for New Age Beverages stock today. This is well below the company’s stock price of $5.08 per share when the markets closed on Wednesday. This was the last day of trading prior to the company’s announcement about the public offering.
The company says that it is planning to raise $45 million from the new public offering before underwriter discounts and other expenses. NBEV says that it is planning to use the funds from this public offering for working capital and to fuel possible acquisitions.
New Age Beverages also notes that there is an additional stock purchase offering available for underwriters. This will give them the ability to purchase 1.935 million shares of New Age Beverages stock within 45 days to cover possible over-allotments.
NBEV says that it is expecting the new public offering for shares of New Age Beverages stock to close on or around Nov. 13, 2018. The deal is also subject to customary closing conditions.
NBEV stock was down 19% as of Friday morning, but is up 111% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.