NewAge (NASDAQ:NBEV) stock is in the spotlight Wednesday after the company filed for Chapter 11 bankruptcy protection.
This saw the company filing for protection in the United States Bankruptcy Court for the District of Delaware. This has it seeking a “value-maximizing sale process” that will offer the best value for shareholders.
NewAge notes in the filing that it’s received a $16 million debtor in possession financing. This will allow the company to continue normal operations throughout the sale process. It’s also seeking court approval for an asset purchase agreement with stalking horse bidder DIP Financing.
NewAge’s decision to file for bankruptcy comes after NBEV stock has lost value for over a year. That started back on Feb. 12 when shares were trading for almost $4 each. However, a steady decline saw the price drop to its current value of just 22 cents per share.
NBEV Shareholders Are Fleeing the Stock
News of the bankruptcy filing today also has shares of NBEV stock seeing incredibly heavy trading. As of this writing, more than 41 million shares of the stock have changed hands. That’s a massive increase compared to its daily average trading volume of about 5.1 million shares.
NewAge is a health and wellness company that offers a wide range of products to customers. That includes beverages, dietary supplements, lotions, and more.
NBEV stock is down 39.3% as of Wednesday morning and is down 81% since the start of the year.
There’s more recent stock market coverage worth reading below!
InvestorPlace is home to all of the latest stock market news for Wednesday! Among that is what has shares of Nogin (NASDAQ:NOGN), Bed Bath & Beyond (NASDAQ:BBBY) and Sorrento Therapeutics (NASDAQ:SRNE) stock moving today. You can find out more at the following links!
More Wednesday Stock Market News
- Nogin (NOGN) Stock Plummets, Rebounds Following Nasdaq Debut
- BBBY Stock Sinks as Bed Bath & Beyond Announces New Financing Plans
- Sorrento Therapeutics (SRNE) Pops on FDA Fast Track Designation
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
