NBEV stock is witnessing one of its best one-day gains this year after the Japanese Narcotics Control Division and the Japanese Ministry of Health approved New Age Beverages Corp (NASDAQ:NBEV) to launch CBD products in Japan.
The cannabis industry has grown at a highly impressive pace over the past year or so, and one of the more important developments has been the offering of a wide range of products for customers. One of these is CBD-infused products, and today, New Age Beverages made a major announcement with regards to its range of CBD products.
In a new development, New Age Beverages announced that it has now been granted the approval to launch its CBD products in Japan by the Japanese Narcotics Control Division and the Japanese Ministry of Health. This is a major development, and the news sparked a rally in NBEV stock in premarket trade.
More importantly, this decision marks a landmark event for New Age as well, since, with this approval, it becomes the first company from the industry to get such an approval in Japan.
NBEV stock climbed by more than 18% at $3.28 in morning trade.
The company has left no stone unturned in its quest to make it a success. It has already completed the development of CBD dietary supplements and beverages meant for the Japanese market. New Age believes that it will be able to launch its products in Japan first in late 2019 and soon work towards launching them in other countries as soon as the regulatory environment changes.
The company has grown at an impressive pace over the recent past and has launched several new CBD-infused beverages. It has worked diligently towards raising its production capabilities, and the merger with Morinda could well prove to be a game-changer for New Age Beverages.
Morinda is well known for having access to the Chinese market, and it is all set to bring in revenues of as much as $240 million annually. It has also acquired Brands Within Reach, a company that has the distribution rights as well as licensing for major beverages.
Despite today's rally, NBEV stock is still down 40% so far this year.
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