New Age Beverages was up nearly 13% this morning in pre-market activity on news that the company has gained approval from a Japanese agency to market CBD products in that country.
From a previous close of $2.78, NBEV traded as high as $3.14 before the bell, reversing a steady trend downward over the last five days as the equity sunk from over $3.20 to a low of $2.77.
The big news that’s pushing New Age Beverages stock higher involves the company’s line of CBD-infused beverages and dietary supplements that have been researched and developed for use in Japan.
Raw materials have been signed off on by the Japanese government, and the company plans to roll out products this year, including CBD body cream, roll-on gel and other consumer products.
CBD products are legal in Japan, although various laws on transport and other aspects still apply. Here’s some text ostensibly gleaned from Japanese Wikipedia by a forum user:
“In Japan, CBD is not included in regulated substances. Article 1 of the Cannabis Control Law regulates leaves and flowers, its products, excluding seeds and stems and their products.
Currently, products containing CBD are not medicines, so they are treated as health foods.”
However, much of the CBD market in Japan, as in other countries, is confined to drop shipping e-commerce operations where New Age Beverages claims to be the first major company to launch products of its kind within the island nation’s market.
Over the month, NBEV spiked up to nearly $3.40 September 11, and rested near that high August 26.
Over six months, the stock was up as high as $6.60 April 8 and year-over-year action reveals a spike up to over eight dollars at the beginning of October.
Now, fans of New Age Beverages (and stockholders) are hoping that the Japanese market news may bring some measure of balance to the equity price as we approach October.