Following the passing of the US 2018 Farm Bill by the Senate on Tuesday and by the House on Wednesday, New Age Beverages (NBEV) stock is continuing its upward momentum on Thursday also. Now, the Farm Bill goes to the table of President Donald Trump, who had already expressed his support for the bill. NBEV stock had surged more than 10% in the pre-market trading on Thursday.
The provisions introduced by Senate Majority Leader Mitch McConnell to legalize hemp are expected to boom the CBD market. Farm Bill removes industrial hemp, the most common source of CBD, from the Controlled Substance Act.
New Age Beverages issued a formal statement on Wednesday morning in response to the Farm Bill passing through the US Senate. The Colorado-based organic and natural healthy functional beverage company said that it is poised to aggressively expand the portfolio of CBD-infused beverages, addressing different key consumer need-states.
In anticipation of a full national rollout, the cannabidiol-based drinks maker has secured retailer and distributor commitments in key legal states including Colorado, California, Washington, and Oregon, and commitments spanning over 125 thousand points of distribution in the independent and DSD channels.
Michael Cunningham, SVP of Sales at New Age commented, ”In the past few months, New Age has confirmed major commitments with several leading retailers in anticipation of the President signing the Farm Bill. The company expects to launch its CBD-infused products into national accounts as they come on board in conjunction with their April resets, and is prepared to penetrate the independent market and DSD distributors beginning in January.”
New Age Beverages stock jumps after its announcement of $85-mln Morinda acquisition
Last week, New Age acquired Tahitian Noni Juice maker Morinda Holdings for $85 million, creating 40th largest non-alcoholic beverage company in the world with $300 million in net revenue. The combined company will have access to 60 countries globally for New Age products.
Shares of New Age Beverages have rallied 28% in the last three days. On Wednesday, the stock jumped 10.48% to $6.01. In the past one year, NBEV stock had given a positive return of 180%.