The sale of NewAge to John Wadsworth, a co-founder of the original Morinda, has been approved.
On August 30, NewAge, the owner of the MLM firms Noni by NewAge and Ariix, filed for Chapter 11 bankruptcy.
NewAge and DIP Financing LLC executed an asset purchase agreement on the same day.
DIP Financing LLC is a fictitious business registered in Wyoming with a Puerto Rico PO Box.
John Wadsworth is the only designated representative of DIP Financing LLC in the NewAge Asset Purchase Agreement.
This was once identified as John J. Wadsworth, one of the original co-founders of Morinda.
Tahitian Noni International, the predecessor to Morinda, first went on sale in 1996. Operations for non-MLM businesses began in 1993.
It turns out that John R. Wadsworth, the “John Wadsworth” who signed the DIP Financing file, is John J. Wadsworth’s nephew.
This information was provided in a document dated September 20 in response to a challenge over whether John R. Wadsworth played any role in NewAge’s demise.
Both Morinda and NewAge have distributors, according to John R. Wadsworth.
I have never been an insider, employee, officer, director, or sizable shareholder of NewAge, Inc., except for a part-time summer job I held doing research for Morinda in 1997 while I was a college student.
Less than 0.4% of the outstanding shares of NewAge, Inc. are beneficially owned by me.
There are additional Wadsworths connected to the company besides John R. We have previously discussed John J. Wadsworth above.
My brother, B. Joseph Wadsworth also serves as the area president of NewAge for the North Asia Area.
Joseph is his brother and already leads NewAge Japan, claims BehindMLM reader “D,” who appears to be familiar with the Wadsworths.
John R. Wadsworth asserts; even though he is deeply involved with NewAge as a distributor
I am not currently, nor have I ever been, an employee, officer, or director of NewAge or its affiliates, in contrast to my uncle and brother.
As a sales agent/distributor for Morinda, in contrast, I have always been autonomous, both before and since it was bought by (New Age).
Also asserting that he “had nothing to do with the demise of the corporation,” John R. Wadsworth
As an independent sales agent and distributor, however, my sales of the company’s items were increasing.
On August 17, John R. Wadsworth alleges that his brother, B. Joseph Wadsworth informed him about NewAge’s financial problems.
B. Joseph Wadsworth advised his brother to speak with Joe Ebb at Houlihan Lokey Capital, Inc., about the circumstances surrounding NewAge.
After we spoke on the phone on August 17, 2022, Houlihan asked me to sign a non-disclosure agreement so they could provide me the same information they gave to any other prospective buyers, under the same secrecy restrictions I had previously committed to.
No family member gave me any information regarding NewAge’s difficulties than the advice to call Houlihan.
John R. Wadsworth started the process of creating DIP Financing LLP on August 20.
The other investors in DIP Financing LLC, except myself, are not insiders, employees, officials, directors, or substantial shareholders of NewAge, Inc., either currently or in the past.
The declaration by John R. Wadsworth continues to discuss Chinese loan problems, but I don’t believe it has anything to do with the sale of NewAge.
I believe that even if John R. Wadsworth may not have included his family in DIP Financing LLC to maintain legality, Morinda has now undoubtedly returned to the Wadsworth family as a whole.
Sadly, the identity of John R. Wadsworth’s DIP Financing LLP partners hasn’t been made public, at least not yet. Additionally, we don’t know how much DIP Financing was spent on NewAge.
According to linked documents, a Statement of Financial Affairs from September 28th indicates that NewAge appears to have been supported by a $3.2 million PPP Loan into 2021.
$2.8 million of the loan amount was forgiven.
Meanwhile, Ariix’s financial situation seems a little precarious. Gross sales for the firm fell from $23.9 million in 2021 to just $15,506 from January to August of the following year.
On August 30, NewAge uploaded a press release confirming its bankruptcy to its website, but the company hasn’t made any additional public acknowledgments.
NewAge has continued to be active on social media during bankruptcy, apparently talking about more “essential” topics.
I don’t anticipate any more significant developments, but I’ll keep an eye on NewAge’s bankruptcy filing.