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Reed’s Inc. (OTCQX: REED), a leading natural ginger beverages company, has announced the closing of a $10 million private placement investment (PIPE) on December 30, 2024. The company sold approximately 14.7 million shares of common stock at $0.68 per share, representing a premium to the closing stock price.
The capital raised will be allocated to strategic initiatives including personnel and marketing investments, potential M&A opportunities, strategic partnerships, and international expansion. CEO Norman E. Snyder, Jr. stated that this financing supports their growth strategy and aims to create long-term shareholder value, with a goal of achieving sustainable growth and profitability in 2025.
Reed’s Inc. (OTCQX: REED), un’azienda leader nel settore delle bevande naturali allo zenzero, ha annunciato la chiusura di un investimento in private placement da 10 milioni di dollari il 30 dicembre 2024. L’azienda ha venduto circa 14,7 milioni di azioni di azioni ordinarie a 0,68 dollari per azione, rappresentando un premio rispetto al prezzo di chiusura delle azioni.
Il capitale raccolto sarà destinato a iniziative strategiche, inclusi investimenti in personale e marketing, potenziali opportunità di fusioni e acquisizioni, partnership strategiche e espansione internazionale. Il CEO Norman E. Snyder, Jr. ha dichiarato che questo finanziamento supporta la loro strategia di crescita e mira a creare valore a lungo termine per gli azionisti, con l’obiettivo di raggiungere una crescita sostenibile e redditività nel 2025.
Reed’s Inc. (OTCQX: REED), una empresa líder en el sector de bebidas naturales de jengibre, ha anunciado el cierre de una inversión de 10 millones de dólares mediante colocación privada (PIPE) el 30 de diciembre de 2024. La empresa vendió aproximadamente 14.7 millones de acciones de acciones comunes a 0.68 dólares por acción, lo que representa una prima con respecto al precio de cierre de las acciones.
El capital recaudado se destinará a iniciativas estratégicas, incluidos inversiones en personal y marketing, oportunidades potenciales de fusiones y adquisiciones, asociaciones estratégicas y expansión internacional. El CEO Norman E. Snyder, Jr. afirmó que este financiamiento apoya su estrategia de crecimiento y tiene como objetivo crear valor a largo plazo para los accionistas, con la meta de lograr un crecimiento sostenible y rentabilidad en 2025.
리드의 주식회사 (OTCQX: REED), 천연 생강 음료 분야의 선도 기업이 2024년 12월 30일에 1천만 달러 규모의 사모 투자(PIPE) 마감을 발표했습니다. 이 회사는 약 1,470만 주의 보통 주식을 주당 0.68달러에 판매했으며, 이는 종가에 비해 프리미엄을 나타냅니다.
모금된 자본은 인력과 마케팅 투자, 잠재적인 인수합병 기회, 전략적 파트너십 및 국제 확장을 포함한 전략적 이니셔티브에 배분될 예정입니다. CEO 노먼 E. 스나이더 주니어는 이러한 자금 조달이 그들의 성장 전략을 지원하며, 장기적으로 주주 가치를 창출하고 2025년까지 지속 가능한 성장과 수익성을 달성하는 것을 목표로 한다고 밝혔습니다.
Reed’s Inc. (OTCQX: REED), une entreprise leader dans le secteur des boissons naturelles au gingembre, a annoncé la clôture d’un investissement par placement privé d’un montant de 10 millions de dollars le 30 décembre 2024. L’entreprise a vendu environ 14,7 millions d’actions ordinaires à 0,68 dollar par action, représentant une prime par rapport au prix de clôture de l’action.
Le capital levé sera alloué à des initiatives stratégiques, y compris des investissements dans le personnel et le marketing, des opportunités potentielles de fusions et acquisitions, des partenariats stratégiques et une expansion internationale. Le PDG Norman E. Snyder, Jr. a déclaré que ce financement soutient leur stratégie de croissance et vise à créer une valeur à long terme pour les actionnaires, avec pour objectif d’atteindre une croissance durable et une rentabilité d’ici 2025.
Reed’s Inc. (OTCQX: REED), ein führendes Unternehmen im Bereich natürlicher Ingwergetränke, hat am 30. Dezember 2024 den Abschluss einer privaten Platzierung von 10 Millionen Dollar bekannt gegeben. Das Unternehmen verkaufte etwa 14,7 Millionen Aktien zu einem Preis von 0,68 Dollar pro Aktie, was einem Aufschlag gegenüber dem Schlusskurs entspricht.
Das eingesammelte Kapital wird in strategische Initiativen investiert, einschließlich Personal- und Marketinginvestitionen, potenziellen M&A-Möglichkeiten, strategischen Partnerschaften und internationaler Expansion. CEO Norman E. Snyder, Jr. erklärte, dass diese Finanzierung ihre Wachstumsstrategie unterstützt und darauf abzielt, langfristigen Wert für die Aktionäre zu schaffen, mit dem Ziel, bis 2025 nachhaltiges Wachstum und Rentabilität zu erreichen.
Positive
- Raised $10 million in PIPE financing
- Share issuance price of $0.68 represents a premium to market price
- Strengthened balance sheet for growth initiatives
Negative
- 14.7 million new shares issued, resulting in significant shareholder dilution
NORWALK, Conn., Jan. 06, 2025 (GLOBE NEWSWIRE) — Reed’s, Inc. (OTCQX: REED) (“Reed’s” or the “Company”), owner of the nation’s leading portfolio of handcrafted, natural ginger beverages, today announced the closing of a securities purchase agreement for a private investment in public equity (“PIPE”) financing. The transaction, which closed on December 30, 2024, generated gross proceeds of $10 million.
Pursuant to the terms of the securities purchase agreement, the Company sold an aggregate of approximately 14.7 million shares of its common stock at a price of $0.68 per share. The issuance price reflected a premium to the closing stock price on December 30, 2024.
“This financing marks another important step in advancing our growth strategy and creating long-term value for our shareholders,” said Norman E. Snyder, Jr., CEO of Reed’s. “The additional capital will support our efforts to invest in personnel and marketing resources, pursue accretive M&A opportunities and strategic partnerships, and expand internationally, all of which we believe will accelerate our growth. With a strengthened balance sheet and optimized cost structure, we are looking forward to executing on our goal of returning Reed’s to sustainable growth and profitability in 2025.”
For more information, please reference the Company’s 8-K filed today, January 6, 2025, with the Securities and Exchange Commission.
About Reed’s, Inc.
Reed’s 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 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 natural, ginger-based beverages. Crafted using real ginger and premium ingredients, Reed’s portfolio includes ginger beers, ginger ales, ready-to-drink ginger mules and hard ginger ales. The brand has recently successfully expanded into the zero-sugar segment with its proprietary, 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 Cola. These flavors are also available in five 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 natural ingredients and no artificial flavors, sweeteners, preservatives, gluten, caffeine, or GMOs.
For more information, visit drinkreeds.com, virgils.com and flyingcauldron.com. To receive exclusive perks for Reed’s investors, please visit the Company’s page on the Stockperks app here.
Forward-Looking Statements
Statements in this release that are not historical are forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are typically identified by terms such as “estimate,” “expect,” “intend,” “project,” “will,” “plan,” and similar expressions. 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.
The risks and uncertainties include, but are not limited to: inventory shortages; 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 significant debt obligations; our ability to develop and expand strategic and third party distribution channels; our dependence on third party suppliers, brewers and distributors; third party co-packers meeting contractual commitments; 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 the wars in Ukraine and Israel, conflict or acts of terrorism; financial markets, commodity and currency impacts of the wars; 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 April 1, 2024, which is 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
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
ir@reedsinc.com
(720) 330-2829
FAQ
How much did Reed’s (REED) raise in their December 2024 private placement?
Reed’s raised $10 million through a private placement (PIPE) financing that closed on December 30, 2024.
What is the share price for Reed’s (REED) December 2024 private placement?
Reed’s sold shares at $0.68 per share in the private placement, which was at a premium to the closing stock price on December 30, 2024.
How many shares did Reed’s (REED) issue in their December 2024 private placement?
Reed’s issued approximately 14.7 million shares of common stock in the private placement.
What will Reed’s (REED) use the $10 million private placement proceeds for?
Reed’s will use the proceeds to invest in personnel and marketing resources, pursue M&A opportunities and strategic partnerships, and expand internationally.
When does Reed’s (REED) aim to achieve sustainable growth and profitability?
Reed’s aims to return to sustainable growth and profitability in 2025.
