Reed’s, Inc. Announces Transition from the Nasdaq Capital Market to the OTCQX and Close of $2.5 Million Bridge Financing
February 14 2023 - 3:30PM
Reed’s, Inc. (NASDAQ: REED) (“Reed’s” or the “Company”), owner of
the nation’s leading portfolio of handcrafted, natural ginger
beverages, announced today its intention to transition from the
Nasdaq Capital Market to the OTCQX US Market, operated by OTC
Markets, Inc. (“OTCQX”).
Reed’s was given until February 13, 2023 to regain compliance
with Nasdaq’s bid price rule and the minimum stockholders’ equity
rule for continued listing on the Nasdaq Capital Market. After
evaluating options to achieve compliance with the minimum
stockholders’ equity rule, Reed’s board of directors determined
that moving to the OTCQX was in the best interests of Reed’s and
its stockholders, in lieu of launching a dilutive capital
raise.
Reed’s received notice from The Nasdaq Stock Market LLC
(“Nasdaq”) on February 14, 2023, that the staff of Nasdaq’s Listing
Qualifications department (the “Staff”) has determined that the
Company’s securities will be delisted from Nasdaq. Trading in the
Company’s securities will be suspended from the Nasdaq Capital
Market at the opening of business on February 16, 2023.
Reed’s will continue to be a reporting company under the
Securities Exchange Act of 1943, as amended. Reed’s has taken the
steps necessary so that its common stock may be quoted for trading
on the OTCQX, under its current trading symbol “REED” following the
withdrawal from trading on the Nasdaq Capital Market. The Company
anticipates trading to begin on the OTCQX on Thursday, February 16,
2023.
In addition to its transition to the OTCQX, Reed’s is announcing
the close of a bridge financing with Whitebox Advisors, LLC for net
proceeds of approximately $2.5 million. The loan carries a 10%
coupon and matures on June 30, 2023, with no prepayment penalties
or amortization. More information can be found in the Company’s 8-k
filed today with the Securities and Exchange Commission.
“We have decided not to take steps to satisfy the minimum
shareholders’ equity requirement to maintain our listing on
Nasdaq,” said Norman E. Snyder, CEO of Reed’s. “We have explored
all the options available to us and believe the decision to leave
the exchange is in the best interest of the Company and its
stockholders. Meeting the minimum shareholders’ equity requirement
would have required a significantly dilutive capital raise. We are
grateful for our time with Nasdaq; however, we believe parting ways
is the most sensible decision for our business. Between our
continued double-digit revenue growth, cost-saving initiatives and
recent bridge financing, we are well-positioned to improve
profitability and turn cash flow positive later this year.”
About Reed's, Inc.
Reed’s is an innovative company and category leader that
provides the world with high quality, premium and naturally bold™
better-for-you beverages. Established in 1989, Reed's is a leader
in craft beverages under the Reed’s®, Virgil’s® and Flying
Cauldron® brand names. The Company’s beverages are now sold in over
45,000 stores nationwide.
Reed’s is known as America's #1 name in natural, ginger-based
beverages. Crafted using real ginger and premium ingredients, the
Reed’s portfolio includes ginger beers, ginger ales, ready-
to-drink ginger mules, and hard ginger ale. The brand has recently
successfully expanded into the zero-sugar segment with its
proprietary, all-natural sweetener system.
Virgil's® is an award-winning line of craft sodas, made with the
finest natural ingredients and without GMOs or artificial
preservatives. The brand offers an array of great tasting, bold
flavored sodas including Root Beer, Vanilla Cream, Black Cherry,
Orange Cream, and more. These flavors are also available in nine
zero sugar varieties which are naturally sweetened and certified
ketogenic.
Flying Cauldron® is a non-alcoholic butterscotch beer prized for
its creamy vanilla and butterscotch flavors. Sought after by
beverage aficionados, Flying Cauldron is made with natural
ingredients and no artificial flavors, sweeteners, preservatives,
gluten, caffeine, or GMOs.
For more information,
visit drinkreeds.com, virgils.com and flyingcauldron.com.
Cautionary Note Regarding Forward Looking
Statements
Statements in this release that are not historical are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Words such as "opportunity," "generate," "confident," "intend,"
“next level” and "will" and variations of such words and similar
expressions are intended to identify such forward-looking
statements. Among other things, quotations from management in this
announcement as well as statements about Reed’s
expectations and anticipated dates are forward-looking statements.
Such forward-looking information reflects management's current
beliefs and is based on information currently available to
management. The ability of Reed’s management to predict future
events or conditions or their impact or the actual effect of
existing or future plans or strategies is inherently uncertain.
These forward-looking statements are not guarantees of future
performance and involve risks, assumptions, and uncertainties,
including those described in Item 1A (Risk Factors) of our most
recent Annual Report on Form 10-K and in other documents that we
file or furnish with the Securities and Exchange Commission, which
you are encouraged to read. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated
or anticipated by such forward-looking statements. Accordingly, you
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. We
expressly disclaim any current intention to update publicly any
forward-looking statement after the distribution of this release,
whether as a result of new information, future events, changes in
assumptions or otherwise.
Investor Relations Contact
Sean Mansouri, CFAElevate IRir@reedsinc.com (720) 330-2829
Reeds (NASDAQ:REED)
Historical Stock Chart
From Nov 2024 to Dec 2024
Reeds (NASDAQ:REED)
Historical Stock Chart
From Dec 2023 to Dec 2024