Newage Inks Manufacturing Deal With Taiwan's TCI

Beverage company Newage Inc NBEV has formed a manufacturing partnership with Taiwan-based TCI Co Ltd.
In addition, Newage will sell its U.S. manufacturing operations and its office based in American Fork, Utah, to TCI.
TCI will be providing a combination of $3.5 million in cash and a share of revenues over the next five years as consideration and will take over production over the next 90 days.
NewAge will continue to produce its Tahitian Noni Juice extractions in its processing facility in Tahiti.
NewAge expects to reduce the costs of goods sold by leveraging TCI's manufacturing expertise.
NewAge also expects to benefit from significantly reduced headcount and SG&A expense that will directly impact its bottom line in 2021.
“TCI brings incredible technology and manufacturing expertise to the venture enabling NewAge to focus on leveraging its sales and marketing capabilities and global distribution network,” said SVP of Operations, Phil Lewis.
Price action: NBEV shares are trading lower by 1.86% at $2.11 in premarket on the last check Monday.