Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - REED'S, INC. | reeds_8k-021810.htm |
| EX-5.1 - OPINION - REED'S, INC. | reeds_8k-ex0501.htm |
| EX-10.1 - ENGAGEMENT LETTER - REED'S, INC. | reeds_8k-ex1001.htm |
| EX-4.1 - SECURITIES PURCHASE AGREEMENT - REED'S, INC. | reeds_8k-ex0401.htm |
| EX-4.2 - COMMON STOCK PURCHASE WARRANT - REED'S, INC. | reeds_8k-ex0402.htm |
| EX-10.2 - AMENDMENT TO ENGAGEMENT LETTER - REED'S, INC. | reeds_8k-ex1002.htm |
EXHIBIT 99.1
Reed’s,
Inc. to Raise Approximately $471,509 in Registered Direct Financing
LOS
ANGELES, CA--(Marketwire - 02/18/10) - Reed’s, Inc. (NASDAQ:REED) announced
today that it has received commitments to close on a registered direct offering
of approximately $471,509 through the sale of units at a price of $1.70 per
unit.
Reed’s
expects to issue up to approximately 277,358 units, consisting of 277,358 shares
of common stock and 83,208 warrants, to purchase shares of common stock. The
warrants are exercisable at $2.10 per share, commencing six
months from closing for a term of five years. The expected gross proceeds
at closing are approximately $471,509 and the total aggregate proceeds if all
warrants are exercised may be as much as $608,525. The expected net proceeds
after fees and expenses are estimated to be $433,788. Assuming exercise of all
the warrants in this transaction the company would receive net proceeds of
$608,525.
“The team
at Reed’s is excited about the announced growth. We had solid growth of over 21%
in the fourth quarter and saw revenues up roughly 30% in January. This round of
financing will assist us in furthering the growth of the company,” stated Chris
Reed, Founder and CEO of Reed’s.
All of
the securities will be offered pursuant to an effective shelf registration
statement. Proceeds from the transaction will be used for general corporate
purposes.
A shelf
registration statement relating to the shares of common stock and warrants
issued in the offering (and the shares of common stock issuable upon exercise of
the warrants) has been filed with the Securities and Exchange Commission (the
“SEC”) and has been declared effective. A prospectus supplement relating to the
offering was filed with the SEC. Copies of the prospectus supplement and
accompanying prospectus may be obtained directly from the Company by contacting
REED’S Inc. 13000 South Spring St. Los Angeles, CA 90061. This announcement is
neither an offer to sell nor a solicitation of an offer to buy any of our shares
of common stock or warrants. No offer, solicitation or sale will be made in any
jurisdiction in which such offer, solicitation or sale is unlawful.
Source
Capital Group, Inc. acted as the exclusive placement agent for the
transaction.
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
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.