NewAge, Inc. Announces Sale of Legacy Direct Store Distribution Division

NewAge, Inc.

SALT LAKE CITY, Sept. 09, 2022 (GLOBE NEWSWIRE) — NewAge, Inc.. (OTC: NBEVQ) (the “Company”), the Utah-based direct-to-consumer (D2C) organic and healthy products company, today announced that its wholly-owned subsidiaries, NABC, Inc. and NABC Properties , LLC (together, “NABC”), have entered into a definitive agreement to sell the former Direct Store Distribution (“DSD”) division to Legacy Distribution Group, a Colorado-based distribution company.

The transaction is expected to close in the fourth quarter of 2022, and closing will be subject to court approval in the company’s ongoing bankruptcy filing.

The company believes that the DSD business is one of Colorado’s largest independent distributors, supplying beverages and snacks to grocers, big-box retailers and convenience stores. He has served the Colorado community for more than twenty years, providing what the company considers best-in-class service to more than 5,000 outlets, and has helped launch and grow some of the largest leading brands in the sector.

NABC is not included in the previously announced bankruptcy cases of the Company and certain of its subsidiaries, and the DSD division continues to operate independently of the NewAge entities currently in bankruptcy proceedings. The proposed sale is part of the company’s overall effort to align its assets and focus its business on maximizing revenue and cash flow generation for its larger scale direct/social selling division.

Legacy Distribution Group is a wholly owned subsidiary of CBD Global Sciences Inc. (CSE: CBDN), an American multinational consumer goods and manufacturing company headquartered in Denver, Colorado.

Ed Brennan, Interim President and CEO of NewAge, said, “Over the past several months, we have conducted a comprehensive strategic review of our business as we strive to simplify our business, expand our operations and to position NewAge for continued growth in the direct selling industry. DSD had humble beginnings and grew into one of the largest independent distributors in the country. This proposed sale delivers what we believe will be an excellent outcome for stakeholders in the DSD business, including our employees and customers. Legacy Distribution Group has a deep understanding of the industry and market in which DSD operates, and we believe they will be able to provide strategic ownership of the business in the future.

About NewAge, Inc.
NewAge is a determined company dedicated to inspiring the planet to live well™. The Utah-based company markets a portfolio of organic and healthy products globally, primarily through a direct-to-consumer (D2C) route to market distribution system in more than 50 countries. The company competes in three major platform categories, including health and wellness, inner and outer beauty, nutritional performance and weight management, through a network of independent brand partners. exclusive, equipped with the main social selling tools and technologies available in the world. For more information about the company, visit NewAgeGroup.com.

Forward-looking statements

This press release contains forward-looking statements based on the beliefs and assumptions of management and on information currently available to the management of the Company. Forward-looking statements include statements relating to the Company’s proposed sale of the DSD Division and the continued operation of the DSD Division by Legacy Distribution Group. Forward-looking statements include statements that are not historical facts and can be identified by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”. of’, ‘may’, ‘plan’, ‘potential’, ‘predict’, ‘project’, ‘seek’, ‘should’, ‘shall’, ‘would’ or similar expressions and the negatives of these terms. The Company’s actual results and the timing of events could differ materially from those anticipated in these forward-looking statements due to certain risks and uncertainties. These risks and uncertainties include, but are not limited to, risks relating to the Company’s ability to complete the proposed sale of the DSD division, including receipt of bankruptcy court approval of the proposed sale; unforeseen difficulties or expenses related to the proposed sale; disruptions to ongoing plans and operations caused by the announcement and expectation of the proposed sale; potential difficulties in retaining employees due to the announcement and expectation of the proposed sale; the response of customers, suppliers and business partners to the announcement of the proposed sale; the effects of Chapter 11 cases on society and on the interests of various constituents; bankruptcy court decisions in Chapter 11 cases and the outcome of Chapter 11 cases generally; the length of time the company will operate under Chapter 11 cases; risks associated with third-party claims in Chapter 11 cases; the potential adverse effects of Chapter 11 matters on the Company’s liquidity or results of operations and increased legal and other professional fees necessary to execute the Company’s reorganization; the conditions to which any debtor in possession financing is subject and the risk that such conditions will not be satisfied for various reasons, including for reasons beyond the control of the Company; consequences of the Company’s debt acceleration, among other risks and uncertainties, as well as the factors described in greater detail in the Company’s most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission (“SEC”), each of which may be accessed at the SEC’s website, www.sec.gov, or in the investor relations section of the Company’s website, investor.newagegroup.com. Except as required by law, the Company undertakes no obligation to update these forward-looking statements or to update the reasons why actual results could differ materially from those anticipated in these forward-looking statements, even if new information become available in the future. Accordingly, undue reliance should not be placed on forward-looking statements.

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