LOS ANGELES, May 27, 2016 (GLOBE NEWSWIRE) -- Reed’s, Inc. (NYSE MKT:REED) (the “Company” or “Reed’s”), maker of the top-selling sodas in natural food stores nationwide, today announced that it has entered into definitive agreements with institutional investors in connection with a private placement of common stock and warrants to purchase common stock. Upon the closing of this financing, Reed’s will receive gross proceeds of approximately $2.2 million resulting from the issuance and sale of 648,294 shares of Common Stock (the “Common Stock”) and 324,147 Warrants to purchase Common Stock (the “Warrants”), at a combined offering price of $3.40 per share. The warrants have an exercise price of $4.25 per share and have a term of 5-years.
The financing, which is expected to close on or about June 2, 2016, is subject to the satisfaction of certain customary closing conditions contained in the securities purchase agreement. In connection with this financing, Reed’s entered in to a registration rights agreement pursuant to which Reed’s will file a resale registration statement for the Common Stock and the Common Stock underlying the Warrants within 30 days.
Reed’s intends to use the aggregate net proceeds of the financing primarily for general corporate purposes and working capital.
Maxim Group LLC acted as the sole placement agent for the financing.
The Company has agreed to file a registration statement covering the resale of the common stock issued in the private placement and issuable upon exercise of the Warrants. The securities were offered only to accredited investors.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.
Further details of the placement will be described in a Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission.
About Reed’s, Inc.
Reed’s, Inc. makes the top-selling sodas in the natural and specialty foods industry and are sold in over 15,000 natural and mainstream supermarkets nationwide. Reed’s products are sold through an additional estimated 40,000 accounts that include specialty gourmet, natural food stores, retail stores, convenience stores and restaurants nationwide and in select international markets. Reed’s has sold over 500 million bottles since inception in June 1989 and is considered the leader of the fast growing craft soda category. Its seven award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil’s Root Beer product line, and a top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched its Reed’s Culture Club Kombucha line of organic live beverages. Other product lines include Reed’s Ginger Candies and Reed’s Ginger Ice Creams.
For more information about Reed’s, please visit the Company’s website at: http://www.reedsinc.com or call 800-99-REEDS.