NewAge (NASDAQ:NBEV) stock is rising higher on Friday as it bounces back from a dip caused by its recent bankruptcy filing.
The bankruptcy filing from NewAge has it seeking Chapter 11 protection while it handles the matter. That includes plans for the company to sell itself during the process. NewAge says this is the best situation to retain value for shareholders.
Following the initial filing, NewAge followed up with additional comments about the bankruptcy. Apparently, it filed for bankruptcy partially due to the cost of an investigation into the company.
This investigation sought to determine if NewAge had violated the Foreign Corrupt Practices Act, a U.S. law that forbids citizens and entities in the country to bribe foreign government officials for their business interests.
NBEV Stock Volatility Continues
NBEV stock has been incredibly volatile following its bankruptcy filing. The initial announcement on Tuesday saw shares rocket higher. However, the stock started to fall in the following days to below pre-bankruptcy filing prices.
Now, we’re seeing heavy trading of NBEV stock start to lift prices again. This has some 85 million shares on the move so far today. For the record, the company’s daily average trading volume is about 7 million shares.
NBEV stock is up about 40% as of Friday morning.
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On the date of publication, William White did not hold (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.