- NewAge (NASDAQ:NBEV) has amended the merger agreement for the acquisition of Ariix, and says that it expects to close the transaction no later than November 30.
- Ariix owns five brands in the e-commerce and direct selling channels, including Arrix, Zennoa, Limu, MaVie, and Shannen.
- The consideration for the Acquisition will be paid in a combination of cash and company stock. On the closing date, NBEV will pay Ariix $20M in cash and issue 19M shares of the company’s common stock.
- If NewAge fails to receive shareholder approval for the issuance of the shares, the company will pay, ~$141M to the members of Ariix, $12.25M to Frederick Cooper (Seller's Agent), and up to $10M as severance payments.
- On July 20, 2020, NewAge signed an agreement to acquire Ariix and four other e-commerce/direct selling companies.
- The combination is expected to create a company with expected annual revenues of more than $500M, a blended gross margin of 70%, and EBITDA of more than $30M.
- Shares up 8% after-hours.