New Age Beverages pushes out board member who settled SEC charges

New Age Beverages Corporation (NASDAQ:NBEV) said late Friday that its board member Robert Evans has resigned after the beverage company was made aware that he had settled a disciplinary action with the US Securities and Exchange Commission.

In a filing with the SEC, the Denver, Colorado beverage company disclosed it was “apprised of previously undisclosed information relating to Evans and Pennington Capital Management LLC stemming from a November 2014 Securities and Exchange Commission order.”

The 2014 order demanded that Evans and Pennington Capital Management pay $165,000 to settle charges that they illegally bought shares in a secondary offering after shorting shares in a restricted period, without admitting or denying guilt.

Shares of New Age Beverages had been on a tear in recent weeks after announcing the debut of a new line of CBD-infused beverages.

READ: New Age Beverages stock flies on plans to showcase CBD-infused drinks in Las Vegas

CBD, which does not produce a high for the user, has been used for medical purposes, including easing inflammation, pain and nausea.

The maker of Marley Cold Brew and Marley Mellow Mood began testing a CBD-infused beverage earlier this year in its home market in Colorado.

New Age Beverages is not the only company looking to get into the CBD-infused beverage business. The Coca-Cola Company (NYSE:KO) has sparked excitement in the cannabis market by saying it is “closely watching” the growth of CBD, a non-psychoactive component in marijuana, as an ingredient in what it called functional wellness beverages.

Both cannabis and CBD are still illegal in the US under federal law, even though several states have legalized marijuana.

New Age Beverages slipped slightly in Monday’s pre-market session to $5.79.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors