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  "documentTitle": "New Age Beverage Corp. (NBEV)",
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  "presentationDate": "2019-06-27 00:00:00",
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  "notes": "This is a research note page from Grizzly Reports detailing short-thesis arguments against NBEV.",
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      "text": "In Morinda's, case, we estimate that Morinda's revenues from China are inflated by 36% in 2017 and 51% in 2016.",
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      "text": "revenue inflation: 51%",
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      "text": "Like has been done numerous times in the past with regards to uncovering discrepancies between financial information recorded in China and SEC filings, our evidence reveals that Morinda’s financials that were disclosed in SEC filings are meaningfully higher than what were reported in China. In Morinda’s, case, we estimate that Morinda’s revenues from China are inflated by 36% in 2017 and 51% in 2016.",
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      "text": "What we do know is that China regulators were reported to have suspended handing out any new licenses amid a nationwide crackdown on wrongdoing in the health products market.",
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      "text": "So far, according to numerous reports in China, Chinese regulators have tried to crack down at least 4 big scale MLM companies with direct-selling licenses in China - Hualin Group, Quanjian Group, Infinitus (China), and Tianshi Group.",
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      "text": "Under the helm of CEO Brent Willis, NBEV has engaged in an aggressive roll-up strategy fueled by a series of equity raises where shares outstanding have risen more than 100% to 75 million shares. Morinda is the sixth transaction... resulting in cumulative negative operating cash flows of $17.8 million since it became a public company in 2016.",
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      "text": "From whatever perspective we look at NBEV, any of the two China related issues will wipe away the profit contribution NBEV had hoped to realize from Morinda. The research we're about to present is brand new and has not been touched upon in other short thesis reports written about the company.",
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      "kind": "paragraph",
      "text": "the crackdown on NHTC along with the bad press on Noni Juice cannot be good for Morinda’s near-term sales prospects.",
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      "text": "Game Set Match",
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