Reed’s Inc.® Announces Closing of $5.4 Million Private Placement
March 14 2022 - 8:30AM
Reed’s, Inc.® (NASDAQ:REED) (“Reed’s” or the “Company”), owner of
the nation’s leading portfolio of handcrafted, all-natural ginger
beverages, today announced the closing of its previously announced
private placement with certain institutional and accredited
investors of 18,594,571 shares of common stock and warrants to
purchase up to an aggregate of 9,297,289 shares of common stock,
for an aggregate gross proceeds of $5.4 million, before deducting
the placement agent’s fees and other offering expenses payable by
the Company. Officers and directors of the Company purchased
approximately $1.1 million of the securities in the offering.
The purchase price per share of common stock and
associated warrant was $0.28 for the investors (other than officers
and directors of the Company) and $0.3502 for the officers and
directors of the Company in compliance with the rules of the Nasdaq
Stock Market. Each whole warrant entitles the holder to purchase
one share of common stock at an exercise price of $0.2877 per
share. The warrants become exercisable six months from today and
are exercisable for a period of five years.
Roth Capital Partners acted as the sole
placement agent for the offering.
The Company currently intends to use the net
proceeds from the offering for working capital and general
corporate purposes.
The securities described above were offered in a
private placement under Section 4(a)(2) of the Securities Act of
1933, as amended (the “Act”) and Regulation D promulgated
thereunder and in a transaction not involving a public offering and
have not been registered under the Act or applicable state
securities laws. Accordingly, the securities may not be reoffered
or resold in the United States except pursuant to an effective
registration statement or an applicable exemption from the
registration requirements of the Securities Act and such applicable
state securities laws.
This press release is neither an offer to
purchase or sell nor a solicitation of an offer to sell or buy the
shares, warrants or any other securities of the Company, nor shall
there be any sale of the securities in any state in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of such
state.
About Reed’s Inc.
Reed’s, Inc. is an innovative company and
category leader that provides the world with high quality, premium
and naturally bold™ better-for-you beverages. Established in 1989,
Reed's Inc. is a leader in craft beverages under the Reed’s®,
Virgil’s® and Flying Cauldron® brand names. The company’s beverages
are now sold in over 45,000 stores nationwide.
Reed’s is known as America's #1 name in
all-natural, ginger-based beverages. Crafted using real ginger and
premium ingredients, the Reed’s portfolio includes ginger beers,
ginger ales, ready-to-drink ginger mules, ginger shots, and ginger
candies. The brand has recently successfully expanded into the
zero-sugar segment with its proprietary, all-natural sweetener
system.
Virgil's® is an award-winning line of craft
sodas, made with the finest natural ingredients and without GMOs or
artificial preservatives. The brand offers an array of great
tasting, bold flavored sodas including Root Beer, Vanilla Cream,
Black Cherry, Orange Cream, and more. These flavors are also
available in nine zero sugar varieties which are naturally
sweetened and certified ketogenic.
Flying Cauldron® is a non-alcoholic butterscotch
beer prized for its creamy vanilla and butterscotch flavors. Sought
after by beverage aficionados, Flying Cauldron is made with
all-natural ingredients and no artificial flavors, sweeteners,
preservatives, gluten, caffeine, or GMOs.
For more information, visit drinkreeds.com,
virgils.com and flyingcauldron.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on current expectations. The
achievement or success of the matters covered by such
forward-looking statements involves risks, uncertainties, and
assumptions, many of which involve factors or circumstances that
are beyond our control. New supply chain challenges that may
develop and further potential inflation cannot be reasonably
estimated. These risks could materially impact our ability to
access raw materials, production, transportation and/or other
logistics needs. The risks and uncertainties referred to above
include, but are not limited to: the intended use of net proceeds
from the private placement, risks associated with current economic
uncertainties tied to the COVID-19 pandemic, including but not
limited to its effect on customer demand for the our products and
services and the impact of potential delays in supply of product
inputs and customer payments; risks associated with new product
releases; the impacts of further inflation; risks that customer
demand may fluctuate or decrease; risks that we are unable to
collect unbilled contractual commitments, particularly in the
current economic environment; our ability to compete successfully
and manage growth; our need for significant capital; our ability to
develop and expand strategic and third party distribution channels;
our dependence on third party suppliers, brewers and distributors
risks related to our international operations; our ability to
continue to innovate; our strategy of making investments in sales
to drive growth; increasing costs of fuel and freight, protection
of intellectual property; competition; general political or
destabilizing events, including war, conflict or acts of terrorism;
the effect of evolving domestic and foreign government regulations,
including those addressing data privacy and cross-border data
transfers; and other risks detailed from time to time in Reed’s
public filings, including Reed’s annual report on Form 10-K filed
on March 30, 2021 and subsequent reports filed with the Securities
and Exchange Commission, which are available on the Securities and
Exchange Commission’s web site at www.sec.gov. These
forward-looking statements are based on current expectations and
speak only as of the date hereof. Reed’s assumes no obligation and
does not intend to update these forward-looking statements, except
as required by law.
Investor Relations
Contact:Elevate IRir@reedsinc.com720.330.2829
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