Reed's, Inc. Eliminates Majority of Corporate Debt With $3.2 Million Sale Leaseback
22 Junho 2009 - 10:15AM
Marketwired
Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in
natural food stores nationwide, announced today that it has closed
escrow on a sale-leaseback on its two buildings in Los Angeles for
an undisclosed amount. Concurrently, the Company has entered into a
long-term lease agreement with the buyer covering the premises,
which are used for the Company's West Coast brewery operations, its
corporate offices, and warehouse space.
The transaction will dramatically improve the company's balance
sheet. The proceeds from the sale shall be applied to pay off $1.8
million of long-term debt and provides $1.4 million of additional
working capital. The Company has filed an 8K outlining the specific
details of the transaction, which can be viewed at:
www.sec.gov.
"We had previously announced that we were looking at alternative
methods of funding, focusing on the least dilutive mechanisms
possible. This transaction provides the Company with the working
capital necessary to expand production and marketing activities as
we enter our busy season, and protects value for our existing
stakeholders. It also enables us to proceed with planned business
initiatives into areas such as new product development, and new
forms of marketing and distribution of our products, including our
new energy drink, the Reed's Natural Energy Elixir," commented Mr.
Chris Reed, Founder and CEO of Reed's, Inc.
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
Reed's Delicious bookmarks at:
http://www.delicious.com/reedsinc
Reed's Facebook Fan Page at:
http://www.facebook.com/pages/Reeds-Ginger-Brew-and-Virgils-Natural-Sodas/57143529039?ref=nf
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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