Reed's, Inc. Announces Successful Close of Rights Offering Raising $1.2 Million From a Broad Base of Subscribers
29 Dezembro 2009 - 12:25PM
Marketwired
Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in
natural food stores nationwide, announced today that the
Corporation has completed its previously announced rights offering
of Series B Convertible Preferred Stock pursuant to its basic and
applicable oversubscription privileges. At closing, the Company
sold 120,820 shares of Reed's Series B Convertible Preferred Stock
through the exercise of rights at a subscription price of $10 per
share, for an aggregate purchase price of $1,208,200. The net
proceeds of the Rights Offering are to be used for general working
capital. Additional investment in Reed's Series B Convertible
Preferred Stock will be available through Source Capital Group,
Inc. ("Source") for the next 30 trading days.
The offering, as filed with the Securities and Exchange
Commission, was for Reed's to raise up to $2,250,000. During the
subscription period the company raised $1,208,200 and issued
120,820 shares of Series B Convertible Preferred Stock. This leaves
an additional $1,041,800 or 104,180 shares of Series B Convertible
Preferred Stock available to be sold through Source under a standby
arrangement. These shares will be available for purchase through
Source until the sooner of (i) Feb. 5, 2010 or (ii) the date the
Offering has been fully subscribed. Investors interested in
participating in this offering may contact the Investment Banking
Department at Source Capital Group, Inc. at 203-341-3500 (extension
224).
"We are pleased that Reed's has been able to strengthen its
equity capital base through the support of our shareholders and the
investors who subscribed for shares through the rights offering,"
stated Jim Linesch, Reed's CFO. "The Company intends to apply to
the OTC Bulletin Board for quotation of the Series B Convertible
Preferred Stock to facilitate the trading of the shares by our
existing investors." He added, "Additionally it will open up the
preferred shares for broader ownership. Money managers and other
institutional investors, with restrictions that limit their
investment to only publicly listed and traded instruments, will now
be able to buy and own these preferred shares." The Company cannot
assure that the Series B Preferred will meet the requirements for
quotation or that there will be an active trading market for our
Series B Preferred.
Mr. Chris Reed, Founder, Chairman and CEO of Reed's, Inc.,
stated that "rights offerings are not that common in the US, though
they are more standard in Europe. They fit our corporate culture
since they empower and reward the shareholders who have supported
us so far. Many of our shareholders are loyal customers who have
responded to our direct marketing pieces on our products such as
the neck tags we hung on our bottles for our IPO. We sell our
products in a more grassroot way so why not our shares?" He added,
"For too long we have seen Wall Street insiders and institutions as
the primary beneficiaries of participation in IPOs and Private
Placements. We at Reed's have always felt that it is only fair to
give existing shareholders a shot at these deals." He ended stating
that, "Reed's is now well positioned to deliver solid growth and
performance. We have the top-selling sodas in natural food stores
nationwide, years of experience under our belt and a strong plan in
place for 2010 under which we are already experiencing solid
growth."
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.
Recently, Reed's added the Sonoma Sparkler brands to its line, a
celebration drink with an established customer base. 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 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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