Shares of New Age Beverages Corp (NASDAQ:NBEV) sank Friday after investors took profits and cashed in on the more than five-fold rise in the Denver-based beverage company’s stock over the last week.
By Friday afternoon, New Age shares had slipped nearly 15% to US$6.68, which marked a sharp reversal from the stock’s dramatic climb, which saw its shares shoot up to an intraday high of US$9.99 earlier in the day Friday from a low of US$1.69 on Monday.
Shares of New Age Beverages have been on a tear since rumors first emerged that the beverages company might be acquired by The Coca-Cola Co (NYSE:KO).
New Age’s stock also got a boost Thursday, closing up 38% at US$7.85, after it said it was debuting a new line of CBD-infused beverages at the North American Convenience Store Show next month.
The company said that its portfolio of CBD-infused beverages would be on display at the North American Convenience Store show (NACS) at the Las Vegas Convention Center on October 7 through October 10.
CBD, which does not produce a high for the user, has been used for medical purposes, including easing inflammation, pain and nausea.
The maker of Marley Cold Brew and Marley Mellow Mood said it began testing a CBD-infused beverage earlier this year in its home market in Colorado.
It said it was now taking the “learnings” it gained in product formulation, taste, efficacy and dosing to create a portfolio of CBD-infused beverages.
The company’s proposed introduction of a line of CBD-infused beverages ramped up talk that Coca-Cola might come along as its suitor.
At the start of the week, Coca-Cola said it is “closely watching” the growth of CBD, a non-psychoactive component in marijuana, as an ingredient in what it called functional wellness beverages.