NBEV stock bounced 6.1% on September 24, 2019, after the company released a press release about a major approval for CBD products in Japan.
New Age Beverages announced the approval by the Japanese Narcotics Control Division and the Japanese Ministry of Health for New Age’s CBD products in Japan and the company’s subsequent launch into the market effective immediately. New Age is the first major company to gain approval by the Japanese Ministry of Health and Narcotics Control Division to sell its portfolio of CBD products in the country.
New Age created a separate, wholly-owned subsidiary in 2018 under which it commercializes all of its CBD-infused products, including its line of Marley CBD-Infused Beverages and its portfolio of ‘Nhanced creams, oils, and roll-ons, and the forthcoming Noni+CBD product. The products will be sold immediately through over 50,000 direct-to-consumer product consultants in Japan beginning with:
- ‘NHANCED CBD Body Cream containing 150 mg CBD per 120 mL container
- ‘NHANCED CBD Roll-On Gel containing 200 mg CBD per 90 mL container
- ‘NHANCED CBD Oil containing 500 mg CBD per 30 mL container
Fumiyuki Isami, Senior Director in Japan for New Age, commented: “New Age is proud to introduce our lineup of CBD products to Japanese consumers and to be first with CBD in Japan. We believe we have one of the highest quality CBD portfolios worldwide and have leveraged all of our scientific insights and research and development expertise to develop these superior performing and highly efficacious products. We have been working intensively with the Japanese Narcotics Control Division and the Ministry of Health for the past eight months to meet all of their stringent testing and requirements. This week, we finally cleared those hurdles, the first major company in the country to do so.”
“NHANCED CBD products for the Japanese market were designed and developed to meet stringent government hemp (cannabis sativa) and cannabidiol (CBD) regulations for safety, purity and efficacy,” said Jarakae Jensen, managing director of R&D for New Age. “The cannabidiol in these three products is sourced from industrial hemp grown in the USA. This hemp is processed extremely carefully to remove all leaves, flowers, buds and branches from the stem, which is then further processed to ensure the cannabidiol is pure and 100% free from tetrahydrocannabinol (THC).”
In addition to this initial launch, New Age has also completed development of its proprietary CBD-infused beverages and dietary supplements for Japan. The company has processed the same raw materials approved by the Japanese Government for use in those products, which New Age anticipates launching in Japan this year and rolling out globally as the regulatory landscape allows in different countries.
Institutional investors have increased their long positions in NBEV stock by 64% over the previous 3 month period.
Revenue growth has averaged 121.9% over the past 5 years! Sales are up over 394% in the last year!
NBEV does not meet the requirements for inclusion in the long-term buy and hold GST Portfolio at this time. The market cap is $267 million but the company did $152 million in sales last year giving it a P/S ratio of 1.76 which is poor IMO. Still, readers may be able to make money in a short-term momentum trade.
Disclosure: We do not hold any position in NBEV stock.