Reed’s, Inc. Successfully Completes $6 Million Financing Round

Reed’s, Inc. Successfully Completes $6 Million Financing Round

NORWALK, Conn. — Reed’s, Inc. (OTCQX: REED) has recently completed a significant transaction by closing a $6 million private investment in public equity (PIPE). This move reinforces the company’s commitments to its long-term growth strategy and expansion.

Details of the Financing

The financial structure of this PIPE involved the automatic conversion of approximately $4.1 million from previously funded Simple Agreements for Future Equity (SAFEs). The lead investor contributing an additional $1.9 million—who holds the title of Reed’s largest shareholder—is D&D Source of Life Holding LTD. Investors will pay a price of $1.50 per share for this transaction. This valuation represents a premium of about 21% over Reed’s stock price prior to closing.

CEO's Vision for the Future

Norman E. Snyder, Jr., CEO of Reed’s, expressed enthusiasm regarding this investment. He stated that it underscores the commitment of their largest shareholder to Reed’s long-term vision and ongoing success. The infusion of capital is expected to enhance working capital and enable the company to increase its inventory levels, ramp up promotional activities, and expand the number of product authorizations. Snyder emphasized the importance of leveraging D&D's overseas market presence to bolster international product distribution.

Growth and Profitability Objectives

With the backing of this financing, Reed’s can pursue significant growth initiatives. The strategy includes expanding its product line and establishing a more robust market presence both domestically and internationally. This focus on strategic expansion aims to meet future objectives of growth and profitability.

About Reed’s, Inc.

Founded in 1989, Reed’s, Inc. is at the forefront of the craft beverage industry, recognized for its high-quality, naturally bold™ beverages. The company has garnered a devoted following through its core brands, Reed's®, Virgil’s®, and Flying Cauldron®, which reflect a commitment to premium ingredients and unique flavors. Today, Reed's products can be found in over 45,000 retail locations across the nation.

Innovative Beverage Portfolio

Reed’s is particularly renowned for its ginger-based beverages, which are crafted using real ginger and the finest ingredients. Their offerings include a range of ginger beers, ginger ales, ready-to-drink ginger mules, and hard ginger ales. Notably, the company has also successfully ventured into the zero-sugar market, employing a proprietary natural sweetening system.

Award-Winning Craft Sodas

Virgil's® represents an award-winning selection of craft sodas known for their exceptional flavor profiles and natural formulations, void of GMOs and artificial preservatives. The line features an array of beloved flavors such as Root Beer, Vanilla Cream, and Black Cherry, accompanied by multiple zero sugar options.

Unique Offerings from Flying Cauldron

Flying Cauldron® stands out as a non-alcoholic butterscotch beer treasured for its delightful mix of vanilla and butterscotch flavors, crafted without artificial additives. This beverage appeals to aficionados seeking a nostalgic taste experience, made entirely from natural ingredients.

Looking Ahead

As Reed’s, Inc. looks to the future, this recent financing serves as a springboard for growth, allowing the company to innovate and adapt in an ever-evolving market. By prioritizing sustainable practices and consumer preferences, Reed’s aims to enhance its offerings while expanding its reach.

Frequently Asked Questions

1. What is the total amount of financing Reed’s, Inc. has secured?

Reed’s, Inc. has successfully completed a $6 million financing round.

2. Who is the largest shareholder involved in this investment?

D&D Source of Life Holding LTD is noted as Reed’s largest shareholder and contributed substantially to this investment.

3. How does this financing support Reed's growth strategy?

The funds from this PIPE will enhance working capital, allowing Reed’s to increase inventory, boost promotions, and expand product authorizations.

4. What unique products does Reed’s offer?

Reed’s offers a range of handcrafted ginger-based beverages, as well as craft sodas from the Virgil’s brand and butterscotch beer from Flying Cauldron.

5. Where can I find Reed's, Inc. products?

Reed's beverages are available at over 45,000 stores nationwide, making them widely accessible to consumers.

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