Reed's (NASDAQ:REED) announced today that it completed its securities purchase agreement with institutional investors, raising an aggregate amount of $750,000 in gross proceeds (before placement agent fees and offering expenses) through the sale 304,880 shares of its common stock at $2.46 per share and warrants to purchase up to 121,952 additional shares of common stock. As I write, shares of Reed’s are up slightly at $2.57 per share on volume of nearly 70,000 shares. Reed’s has a market cap of $27 million and a 52-week range between $1.36 and $3.08 per share.Chris Reed, Founder, Chairman and CEO of Reed's, Inc., stated, "We received an unsolicited offer to buy shares from one of our institutional investors. With the stock up significantly, we took advantage of an opportunity to beef up the capital reserves of the Company as we move into a robust 2011."
Source Capital Group, Inc. acted as the exclusive placement agent for the transaction.
Reed's makes several brands of natural sodas and beverages. Their products are sold in over 10,500 stores throughout the natural foods industry and supermarkets nationwide. Reed's six award-winning, non-alcoholic Ginger Brews are unique in the beverage industry as they are made using fresh ginger, spices and fruits with a brewing process that predates commercial soft drinks.
The Company also produces a Natural Energy Elixir and 'Reed's Rx', a Natural Ginger Nausea Relief product for the drug store and grocery retail channels. Reed's, Inc. owns China Cola and the Virgil's line of sodas that includes the award-winning Virgil's Root Beer as well as Virgil's Cream Soda, Black Cherry Cream Soda, Orange Cream Soda and Real Cola.
Reed's products are sold internationally in Canada and Mexico, along with a small presence in Europe, the Middle East, Africa, Japan and Singapore.
For more information about Reed's, please visit the company's website at: http://www.reedsinc.com or call 800-99-REEDS.
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