Who Owns NewAge Company?

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Who Really Owned NewAge?

Understanding a company's ownership is crucial for grasping its trajectory, especially amidst significant events like bankruptcy. NewAge, Inc., a once-promising wellness company, offers a compelling case study. This exploration delves into the NewAge SWOT Analysis, examining the evolution of its ownership, from its roots as a craft brewer to its eventual Chapter 11 filing.

The story of NewAge Company Ownership is a complex one, shifting dramatically over time. From the initial founders to institutional investors, the NewAge company's shareholder landscape changed as it navigated the Nasdaq and pursued ambitious growth. Unraveling Who owns NewAge provides critical insights into the decisions that shaped its fate, making it a fascinating subject for anyone interested in corporate finance and business strategy, including details about NewAge Inc and the NewAge corporation.

The story of NewAge Company began in 2010 as American Brewing Company. Initially, the details of the ownership structure among the founders are not readily available in public records. However, the company's trajectory quickly evolved, setting the stage for significant changes in ownership.

A pivotal shift occurred in 2015 when the company moved away from the beer business and acquired the kombucha brand Bucha. This strategic pivot marked the beginning of a transformation, leading to further adjustments in the ownership landscape. The arrival of new leadership in 2016, with CEO Brent Willis at the helm, signaled a new era focused on building a comprehensive beverage portfolio.

Under CEO Brent Willis, the company made several key acquisitions, including Aspen Pure and Xing Beverage. These moves expanded its direct store distribution (DSD) capabilities. Subsequently, brands like Marley and Coco Libre coconut water were added to the portfolio. These strategic acquisitions and leadership changes would have reshaped the initial ownership, likely diluting the stakes of the original founders and bringing in new investors to fund the expansion.

Key Ownership Changes

The early years of NewAge, now known as NewAge Inc., were marked by significant strategic shifts and acquisitions that altered its ownership structure. The transition from American Brewing Company to a diversified beverage company involved key decisions that impacted the initial ownership stakes. The company's expansion through acquisitions such as Aspen Pure and Xing Beverage brought in new investors and diluted the original founder's shares.

• 2010: American Brewing Company is founded. Initial ownership details are not publicly available.
• 2015: Divests beer business and acquires Bucha, signaling the beginning of a strategic shift.
• 2016: Brent Willis becomes CEO, driving the expansion through acquisitions.
• Subsequent Years: Acquisitions like Aspen Pure, Xing Beverage, Marley, and Coco Libre further reshape the ownership, likely involving new investors and diluting original stakes.

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The ownership structure of NewAge, Inc. significantly transformed following its Nasdaq listing in 2017. The company pursued an aggressive strategy of mergers and acquisitions. A pivotal moment was the 2018 merger with Morinda, a noni juice company. This was followed by a major merger with ARIIX, a direct selling company, in 2020. This strategic move, which included the addition of four other e-commerce/direct selling companies, aimed to create a global entity with projected pro forma revenues exceeding $500 million across more than 75 countries.

Before its bankruptcy filing, NewAge, Inc. had a concentrated institutional ownership. Key institutional investors included Murphy & Mullick Capital Management Corp, Lowe Wealth Advisors, LLC, and Main Street Group, LTD. As of August 10, 2022, just before the bankruptcy, there were 244 holders of record of NewAge's common stock, with a total of 168,213,761 shares outstanding. The ARIIX acquisition, while intended to be a strategic advantage, led to integration challenges. Additionally, an internal investigation into ARIIX's international business practices for potential Foreign Corrupt Practices Act (FCPA) violations added to the financial strain, contributing to the company's eventual bankruptcy.

The evolution of NewAge company ownership reflects a period of rapid expansion and strategic shifts. The initial public offering and subsequent mergers aimed to build a global presence. However, challenges, including integration issues and legal investigations, ultimately contributed to the company's financial difficulties. For more details, see the Brief History of NewAge.

Key Takeaways on NewAge Company Ownership

NewAge Inc.'s ownership structure changed dramatically due to mergers and acquisitions.

• The company's strategy aimed for rapid growth through acquisitions.
• Institutional investors held a significant portion of the shares.
• Financial difficulties led to bankruptcy, impacting all shareholders.
• Major shifts in ownership occurred after the 2017 Nasdaq listing.

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Before its Chapter 11 bankruptcy filing in August 2022, the Board of Directors of NewAge, Inc. was central to its strategic decisions. Brent Willis was the CEO and a board member from April 2016 until January 2022. Following Willis's departure, Chairman Ed Brennan became interim CEO in March 2022. Fred W. Cooper, founder and CEO of ARIIX, joined the board in November 2020 as part of the merger. Other key figures included Kevin Manion as CFO, who left in July 2022, and Carl Aure as Chief Accounting Officer and Senior Vice President from December 2018 to October 2021. The company's leadership faced significant challenges, including shareholder lawsuits and an SEC investigation.

The board's composition and actions were critical during a period marked by both growth and financial instability. The merger with ARIIX and the development of new product lines were key strategic moves. However, these decisions were made amid legal challenges and concerns about internal controls. These issues ultimately contributed to the company's bankruptcy filing, highlighting the importance of effective corporate governance and oversight in maintaining shareholder confidence and ensuring long-term viability. Understanding the board's role provides insight into the company's trajectory and the factors that led to its eventual restructuring.

The voting structure of NewAge, Inc., as a publicly traded company, generally followed a one-share-one-vote principle for its common stock. However, the company faced shareholder class action lawsuits. These lawsuits alleged false and misleading statements by officers and directors, particularly concerning distribution agreements, partnerships, and the development of CBD-infused beverages. These legal actions, along with an SEC investigation into former CEO Brent Willis for alleged 'multi-year fraud', highlight governance controversies. Further governance challenges were indicated by the disclosure of a material weakness in its internal controls related to the acquisition of ARIIX. For more information on the target market, see Target Market of NewAge.

Key Takeaways on NewAge Company Ownership

The board of directors played a pivotal role in the strategic direction of NewAge, Inc.

• Brent Willis served as CEO and board member until January 2022.
• The company faced shareholder lawsuits and SEC investigations.
• The voting structure typically followed a one-share-one-vote principle.
• The company's financial challenges culminated in a Chapter 11 bankruptcy filing.

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Over the past few years, the ownership of the NewAge company has undergone significant transformations. A major event was the merger with ARIIX and four other direct selling companies in 2020, which aimed to create a global enterprise. However, this expansion faced challenges like supply chain issues and management changes. The company's journey highlights the complexities of rapid growth and managing a diverse portfolio, particularly in the direct-to-consumer wellness sector.

The company filed for Chapter 11 bankruptcy on August 30, 2022, including its subsidiaries Ariix LLC, Morinda Holdings, Inc., and Morinda, Inc. This led to the suspension of trading of its common stock on Nasdaq on September 8, 2022, and the stock began trading on the OTC Market under the symbol 'NBEVQ.' In 2023, the company went out of business as per its Chapter 11 liquidation filing, and its assets were acquired by another company, dissolving the original entity. This marked a complete shift in ownership and operational control, indicating the high risks associated with rapid expansion.

The shifts in NewAge company ownership, from ambitious acquisitions to bankruptcy and liquidation, reflect the volatility within the direct-to-consumer market. These events underscore the importance of robust financial planning and strategic management. For more insights into the company's challenges, explore the Marketing Strategy of NewAge.

Ownership Changes

The company's ownership structure changed dramatically due to bankruptcy and asset sales. These changes marked a significant shift away from the original ownership.

Financial Difficulties

The bankruptcy filing and subsequent liquidation highlight the financial struggles faced by NewAge. The company faced challenges in integrating acquired brands.

Stock Trading

Trading of the company's stock was suspended on Nasdaq. The stock was then traded on the OTC Market under the symbol 'NBEVQ'.

Future Outlook

The company's future is now tied to the entity that acquired its assets. The original NewAge entity no longer exists.

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