Reed’s (NYSE: REED) Announces Completion of $10 Million Private Placement

On December 30, 2024, Reed’s Inc., a Delaware corporation, finalized a securities purchase agreement resulting in the issuance and sale of 14,705,882 shares of common stock. The shares, priced at $0.68 per share, were obtained by accredited investors, generating a total of $10,000,000 in gross proceeds. This transaction caters to the overarching goal of supporting the company’s operational needs and strategic initiatives.

The securities purchase agreement incorporated essential elements such as standard contractual provisions, mutual covenants, and indemnification obligations for both Reed’s and the investors. Additionally, a registration rights agreement was established, requiring Reed’s to file a registration statement on Form S-1 at its expense within 45 days to facilitate the shares’ resale. This strategic move aligns with Reed’s intentions to utilize the net proceeds for various purposes, including enhancing working capital, investing in human resources and marketing endeavors, pursuing strategic engagements, and expanding globally.

The aforementioned transaction falls under the category of unregistered sales of equity securities, carrying out the exemption from registration requirements as stipulated by the Securities Act of 1933. The issuance of these shares unfolded through a private placement method, following the guidelines outlined in Section 4(a)(2), Rule 506(b), and Regulation S.

Furthermore, on January 6, 2025, Reed’s released an official statement to announce the successful closure of the private placement, emphasizing the generated gross proceeds and the supportive nature of the investors toward the company’s growth strategies and shareholder value creation. Norman E. Snyder, Jr., the Chief Executive Officer of Reed’s, highlighted the pivotal role of this financing in furthering the company’s overarching growth objectives, underscoring the utilization of capital to drive growth, pursue strategic collaborations, and increase the company’s international footprint.

For comprehensive details on this transaction, refer to Reed’s 8-K filing on January 6, 2025, with the Securities and Exchange Commission.

About Reed’s, Inc.
Reed’s, Inc., a pioneering brand renowned for its high-quality, natural ginger beverages, boasts a portfolio consisting of Reed’s®, Virgil’s®, and Flying Cauldron®. Established in 1989, Reed’s craft beverages are celebrated for their natural ingredients and innovative flavor profiles, resonating with consumers nationwide through over 45,000 retail locations.

The forward-looking statements included in this announcement abide by regulatory guidelines and underscore the company’s commitment to enhancing shareholder value while navigating potential risks and uncertainties that the business landscape may present.

Investor Relations Contact
For inquiries related to investor relations, please reach out to Sean Mansouri, CFA, or Aaron D’Souza at [email protected] or call (720) 330-2829.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Reed’s’s 8K filing here.

Reed’s Company Profile

Reed's, Inc engages in the manufacture and distribution of natural beverages in the United States. The company offers Reed's craft ginger beer; Reed's real ginger ales; Reed's Classic Mules; Reed's Hard Ginger Ale; Reed's ready to drink products; and Virgil's handcrafted sodas.