New Age Beverages dumps board member who settled with SEC

New Age Beverages dumps board member who settled with SEC

New Age Beverages Corp. NBEV, -10.98% disclosed Friday afternoon that a board member resigned after the company learned that he had previously settled a disciplinary action with the Securities and Exchange Commission. The beverage company, which plans to launch drinks with a cannabis-derived compound commonly known as CBD, said in a filing with the SEC that it “was apprised of previously undisclosed information relating to Robert J. Evans and Pennington Capital Management LLC stemming from a November 2014 Securities and Exchange Commission Order” on Thursday. That order required board member Evans and Pennington Capital Management to pay $165,000 to settle charges of illegally buying shares in a secondary offering that they had previously shorted in a restricted period, without admitting nor denying guilt. Companies that sell or plan to sell CBD beverages, such as New Age Beverages and India Globalization Capital Inc. IGC, -23.74% or IGC, have been caught up in a volatile market for cannabis-related stocks around Canada’s legalization of recreational marijuana sales this week. New Age Beverages shares have jumped 193% in the past three months, as the S&P 500 index SPX, -0.04% has declined 1.3%.

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