Offering also includes warrant coverage; Maxim Group will be the agent
By Devika Patel
Knoxville, Tenn., May 27 – Reed's, Inc. said it has arranged a $2.2 million private placement of stock. Maxim Group LLC is the agent.
The company will sell 648,294 common shares at $3.40 apiece. The price per share is an 11.69% discount to the May 26 closing share price of $3.85.
The investors will also receive warrants for 324,147 shares. The five-year warrants are each exercisable at $4.25, which represents a 10.39% premium to the May 26 closing share price.
Settlement is expected June 2.
Proceeds will be used for general corporate purposes and working capital.
Los Angeles-based Reed's develops a line of ice creams, candies and non-alcoholic beverages.
| Issuer: | Reed's, Inc.
|
| Issue: | Common shares
|
| Amount: | $2,204,200
|
| Shares: | 648,294
|
| Price: | $3.40
|
| Warrants: | For 324,147 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $4.25
|
| Agent: | Maxim Group LLC
|
| Pricing date: | May 27
|
| Settlement date: | June 2
|
| Stock symbol: | NYSE: REED
|
| Stock price: | $3.85 at close May 26
|
| Market capitalization: | $45.55 million
|
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