Reed's, Inc. Revises Corporate Financing Plans
17 Março 2009 - 10:00AM
Marketwired
Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in
natural food stores nationwide, has provided an update to its
corporate financing plans. The company cited sales, reduced costs
of goods, new mainstream accounts and increased efficiency in its
bottling operations as catalysts.
"In January the company filed an S-1 Registration Statement for
$10 million with the intention of completing a rights offering at
$2.25 per share," stated Christopher Reed, Founder and CEO of
Reed's, Inc. "Due to reductions in operating expenses and
improvements in gross margins that have us on track for break-even
in 2009, we are pursuing more traditional asset based lenders."
Mr. Reed added, "Our cash flow is much better than we
anticipated, due in large part to the aggressive cost-cutting and
efficiencies that we have implemented across the organization;
therefore we are negotiating with companies that can lend more
aggressively on our assets. We believe that these non-dilutive
funding mechanisms will better serve the company and its
stakeholders at this time. We currently don't need to raise the $10
million originally filed for in the S-1. If we do use it, we will
significantly lower the amount."
Mr. Reed continued, "When we went public, the capital markets
were at a premium to the private markets. Now our current valuation
is about 50% of sales, where my private beverage company
counterparts are still, as late as December 2008, receiving
valuations in the 200-300% of sales range from investors. If we
could receive private company valuations as a public company, we
may pursue strategic investors to come on board."
About Reed's, Inc.
Reed's, Inc. makes the top selling sodas in natural food markets
nationwide and is currently selling in 10,500 supermarkets in
natural foods and mainstream. Its six 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. In addition, the
Company owns the top selling root beer line in natural foods, the
Virgil's Root Beer product line, and the top selling cola line in
natural foods, the China Cola product line. Other product lines
include: Reed's Ginger Candies and Reed's Ginger Ice Creams.
Reed's products are sold through specialty gourmet and natural
food stores, mainstream supermarket chains, retail stores and
restaurants nationwide, and in Canada. For more information about
Reed's, please visit the company's website at:
http://www.reedsgingerbrew.com or call 800-99-REEDS.
Follow Reed's on Twitter at:
http://www.twitter.com/reedsgingerbrew
Join the Reed's Facebook group at:
http://www.facebook.com/group.php?gid=79281735864
Subscribe to Reed's RSS feed at:
http://www.irthcommunications.com/REED_rss.xml
More information can be found at:
http://www.irthcommunications.com/clients_REED.php
SAFE HARBOR STATEMENT
Some portions of this press release, particularly those
describing Reed's goals and strategies, contain "forward-looking
statements." These forward-looking statements can generally be
identified as such because the context of the statement will
include words, such as "expects," "should," "believes,"
"anticipates" or words of similar import. Similarly, statements
that describe future plans, objectives or goals are also
forward-looking statements. While Reed's is working to achieve
those goals and strategies, actual results could differ materially
from those projected in the forward-looking statements as a result
of a number of risks and uncertainties. These risks and
uncertainties include difficulty in marketing its products and
services, maintaining and protecting brand recognition, the need
for significant capital, dependence on third party distributors,
dependence on third party brewers, increasing costs of fuel and
freight, protection of intellectual property, competition and other
factors, any of which could have an adverse effect on the business
plans of Reed's, its reputation in the industry or its expected
financial return from operations and results of operations. In
light of significant risks and uncertainties inherent in
forward-looking statements included herein, the inclusion of such
statements should not be regarded as a representation by Reed's
that they will achieve such forward-looking statements. For further
details and a discussion of these and other risks and
uncertainties, please see our most recent reports on Form 10-KSB
and Form 10-Q, as filed with the Securities and Exchange
Commission, as they may be amended from time to time. Reed's
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise.
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Contact IRTH Communications, LLC Mark B. Moline Managing Partner
760-458-4899 Email Contact http://www.irthcommunications.com
http://www.twitter.com/irthcomm
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