Key Developments: Reed’s, Inc. (REED.O)
1.45USD
9 Feb 2010
$-0.03 (-1.71%)
$1.45
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$1.48
$1.42
11,955
11,677
$2.54
$0.73
Latest Key Developments
Reed's, Inc. Expands Relationship With The Kroger Co.
Reed's, Inc. announced that it has expanded its relationship with The Kroger Co. Kroger has authorized Virgil's Diet Root Beer, Virgil's Diet Cream Soda and Virgil's Orange Cream Soda. Product is expected to be in stores beginning in February. By May, Reed's expects the new SKU's to be rolled out into approximately 795 Kroger stores nationwide.
Reed's, Inc. Announces Close of Rights Offering Raising $1.2 Million From Broad Base of Subscribers
Reed's, Inc. announced that it 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) February 5, 2010 or (ii) the date the Offering has been fully subscribed.
Reed's, Inc. Partners With Marsham International Food Brokers, Inc.
Reed's, Inc. announced that its partnering up with Marsham International Food Brokers, Inc. out of Richmond Hill, Ontario, Canada. Marsham International represents many of the natural food companies in eastern Canada.
Reed's, Inc. Issues Reminder of Expiration of Rights Offering
Reed's, Inc. announced that its previously announced rights offering will expire at 5:00 p.m., Eastern Standard Time, on December 21, 2009, unless extended. The Company distributed to holders of its common stock as of the close of business on November 13, 2009, transferable subscription rights to purchase an aggregate of 225,000 shares of Series B Convertible Preferred Stock at a subscription price of $10.00 per share. Shareholders were issued one transferable right for each share of common stock held on record date. Each four subscription rights will entitle the holder thereof to purchase one share of common stock at the subscription price of $10.00 per share and carries with it a basic subscription privilege and an over-subscription privilege. The rights offering expires at 5:00 p.m., Eastern Standard Time, on December 21, 2009, unless extended. The Company intends to offer any shares of Series B Preferred that remain unsubscribed (after taking into account all oversubscription rights exercised) at the expiration of the rights offering to the public at $10.00 per share of Series B Preferred.
Reed's, Inc. Secures Revolving Credit Facility Of $3 Million
Reed's, Inc. announced that the Company has closed a financing agreement with GemCap Lending I, LLC (GemCap) for a $3 million revolving credit facility, secured primarily by its accounts receivable and inventory. The GemCap facility will replace Reed's existing credit facility. The new senior revolving facility reflects improved eligibility and reduced reserves on Reed's collateral base for borrowing.
Reed's, Inc. Receives Order From The Military Supermarket Organization
Reed's, Inc. announced that it has received its first purchase order from the Military Supermarket organization, the Defense Commissary Agency (DeCA), headquartered at Fort Lee, Virginia. Reed's will initially provide 5 SKU's of Reed's and Virgil's products, including: Reed's Extra Ginger Brew, Reed's Ginger Brew, Virgil's Root Beer, Virgil's Cream Soda and Virgil's Black Cherry Cream Soda.
Reed's, Inc. Completes Acquisition Of Sonoma Sparkler Brand
Reed's, Inc. announced that it has purchased the brand and certain assets of Sonoma Sparkler, including the six beverages sold under the brand, for a price of $252,000. The purchase will be paid in cash from gross profits generated from sales of the Sonoma Sparklers brand over the next 24 months. The Company stated that because this was a cash purchase and did not involve stock, it will not result in any dilution to existing shareholders.
Reed's, Inc. Closes Distribution Deal With Five Star Beverage
Reed's, Inc. announced that it has entered into a distribution agreement with five Star Beverage of San Diego. This distribution agreement will increase Reed's & Virgil's presence throughout greater San Diego County. The deal will increase Reed's distribution in San Diego and the surrounding areas.
Reed's, Inc. Offers Upto $718,540 In Registered Direct Financing From Sale Of $1.80 Units
Reed's, Inc. announced that it is offering in a registered direct offering up to $718,540 through the sale of Units at a price of $1.80 per Unit. Reed's expects to issue up to 189 Units, consisting of 399,189 shares of Common stock, 159,676 Series A Warrants, 83,444 Series B Warrants and 33,378 Series C Warrants. The Series B Warrants are exercisable at any time after the closing, at an exercise price of $1.80 per share, and will expire 60 trading days after the closing. The Series A Warrants and Series C Warrants are exercisable at $2.25 per share, commencing 180 days from closing for a term of five years. If the entire offering is placed, the expected gross proceeds at Closing will be $718,540 and the total aggregate proceeds if all Warrants are exercised will be $1,303,110. The expected net proceeds after fees and expenses are estimated to be $621,057.
Reed's, Inc. Expands Relationship With Weis Markets
Reed's, Inc. announced that it has expanded its relationship with Weis Markets, growing from 50 stores to 154 stores and adding an additional product.
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