Reed’s Inc. Announces Closing of Common Stock and Full Exercise of Underwriters’ Option to Purchase Additional Shares
24 Novembro 2020 - 7:18PM
Reed’s Inc. (Nasdaq: REED), owner of the nation’s leading portfolio
of handcrafted, all-natural beverages, today announced it has
closed its previously announced underwritten public offering of
18,750,000 shares and the full exercise of the underwriters’ option
to purchase an additional 2,812,500 shares. In total, the Company
issued 21,562,500 of its common stock at a price of $0.56 per share
for gross proceeds of approximately $12.1 million. Included
within the total offering amount, members of Reed’s Board of
Directors and senior management invested in the aggregate of
approximately $625,000.
“The success of this offering and insider
participation is a testament to our collective confidence in our
long-term growth potential. We are driving accelerated growth,
driven by strong execution and innovation in a vibrant growth
category,” stated Norman E. Snyder, Chief Executive Officer of
Reed’s, Inc. “The proceeds of this offering will fortify our
balance sheet, providing the resources and flexibility needed to
position Reed’s to capitalize on its future opportunities and based
on our current trajectory and market assumptions will provide the
appropriate resources to reach profitability.”
Roth Capital Partners acted as sole book-running
manager for the offering. National Securities Corporation, a wholly
owned subsidiary of National Holdings, Inc. (NASDAQ:NHLD) is acting
as co-manager.
Reed’s intends to use the net proceeds of the
offering for the repayment of approximately $4.6 million under its
senior credit facility and approximately $4.25 million for the
repayment of its Subordinated, Convertible, Non-Redeemable Secured
Note (the “Raptor Note”) in favor of Raptor/ Harbor Reeds SPV, LLC
originally issued April 21, 2017. Reed’s intends to use the
remaining proceeds to fund working capital and for general
corporate purposes. In addition, Raptor/ Harbor Reeds SPV, LLC has
agreed that the remaining approximately $750,000 outstanding under
the Raptor Note will be satisfied by issuance of approximately
1,339,286 shares of Reed’s common stock in a private placement
transaction at the public offering price.
A shelf registration statement relating to the
shares of common stock issued in the offering was filed with the
Securities and Exchange Commission (the "SEC") and is effective.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. Copies of the
prospectus supplement and accompanying base prospectus were filed
with the Securities and Exchange Commission and may be obtained
from Roth Capital Partners, LLC, 888 San Clemente, Newport Beach,
CA 92660, Attention: Prospectus Department, by telephone at (800)
678-9147 or by accessing the SEC's website, www.sec.gov.
Safe Harbor / Forward-Looking
Statements
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995 regarding the public offering and the intended
use of proceeds from the offering. These forward-looking statements
are subject to risks and uncertainties that may cause actual
results to differ materially, including market conditions, risks
associated with the cash requirements of our business and other
risks detailed from time to time in our filings with the Securities
and Exchange Commission, and represent our views only as of the
date they are made and should not be relied upon as representing
our views as of any subsequent date. Reed’s does not assume any
obligation to update any forward-looking statements.
CONTACT: Investor RelationsScott Van Winkle,
ICR(800) 997-3337 Ext 2Or (617)
956-6736Email: ir@reedsinc.comwww.reedsinc.com
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