NewAge reaches settlement agreement with SEC

Chicago, Nov. 9 – NewAge, Inc. has worked with the Securities and Exchange Commission on a settlement agreement, according to a submitted order to the U.S. Bankruptcy Court for the District of Delaware.

The company’s former chief executive officer and director Brent D. Willis made misleading statements about the state of the company from approximately July 2017 to April 2019 to inflate the stock price of New Age, improve its financial position and financially benefit himself.

The false and misleading statements concerned a wide range of matters, including NewAge’s alleged development of a portfolio of CBD-infused beverages and its distribution deals with the U.S. military and a number of large domestic and international distributors and retailers.

NewAge will not be fined money but must stop making misleading statements going forward. There is a cease-and-desist order.

Moreover, the company must continue to cooperate with the SEC in the administrative action or any related proceeding or investigation commenced by the SEC or to which it is a party.

The Midvale, Utah-based direct-to-consumer organic and healthy products company filed bankruptcy on Aug. 30 under Chapter 11 case number 22-10819.

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