Reed’s Inc. Announces $7.9 Million Registered Direct Offering
May 05 2021 - 8:00AM
Reed’s Inc. (Nasdaq: REED), owner of the nation’s leading portfolio
of handcrafted, all-natural beverages, today announced that it has
entered into a stock purchase agreement relating to a registered
direct offering in which the Company would sell up to 6,680,000
shares of its common stock at a price of $1.18 per share for gross
proceeds of approximately $7.9 million.
Roth Capital Partners, served as sole placement
agent for the transaction. After the placement agent fees and
estimated offering expenses payable by the Company, the Company
expects to receive net proceeds of approximately $7.4 million. The
offering is expected to close on May 7, 2021, subject to customary
closing conditions.
Reed’s intends to use the proceeds to fund
working capital and for general corporate purposes, including
supporting additional distribution opportunities as the Company
continues executing against its strategic plan.
The shares described above are being offered by
Reed’s Inc. pursuant to a registration statement on Form S-3
(Registration No. 333-229105), previously filed with and
subsequently declared effective by the Securities and Exchange
Commission. A prospectus supplement and accompanying base
prospectus relating to the offering will be filed with the SEC and
will be available on the SEC’s website at http://www.sec.gov.
Copies of the prospectus supplement and accompanying base
prospectus relating to this offering, when available, may be
obtained from Roth Capital Partners, 888 San Clemente Drive, Suite
400, Newport Beach, CA 92660, (800) 678-9147.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy any of the
securities described herein, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Reed’s, Inc.:
Established in 1989, Reed's is America's number
1 name in Ginger and America’s best-selling Ginger Beer brand and
innovator for decades. Virgil's is America's best-selling
independent, full line of natural craft sodas. The Reed's®
portfolio is sold in over 40,000 retail doors nationwide. Reed's
core product line of Original, Premium, Extra and Strongest Craft
Ginger Beers, along with the Certified Ketogenic Zero Sugar Extra
Ginger Beer are unique due to the proprietary process of using
fresh ginger root combined with a Jamaican inspired recipe of
natural spices and fruit juices. Reed’s recently introduced Reed’s
Real Ginger Ale in both full and zero sugar versions that contain
2,000 mg of fresh ginger. The company uses this same handcrafted
approach in its award-winning Virgil's™ line of great tasting, bold
flavored craft sodas and Certified Ketogenic Zero Sugar
Varieties.
Safe Harbor / Forward-Looking
Statements
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995 regarding the proposed offering and the intended
use of proceeds from the offering. These forward-looking statements
are subject to risks and uncertainties that may cause actual
results to differ materially, including market conditions, risks
associated with the cash requirements of our business and other
risks detailed from time to time in our filings with the Securities
and Exchange Commission, and represent our views only as of the
date they are made and should not be relied upon as representing
our views as of any subsequent date. We do not assume any
obligation to update any forward-looking statements.
CONTACT:
Investor RelationsReed Anderson, ICR(646) 277-1260
ir@reedsinc.com www.reedsinc.com
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