Offering also includes warrant coverage; Maxim Group was the agent
By Devika Patel
Knoxville, Tenn., June 3 – Reed's, Inc. settled a $2.35 million private placement of stock on June 2, according to an 8-K filed Friday with the Securities and Exchange Commission. Maxim Group LLC was the agent for the deal, which priced for $2.2 million on May 27.
The company sold 692,412 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 also received warrants for 346,206 shares. The five-year warrants are each exercisable at $4.25, which represents a 10.39% premium to the May 26 closing share price.
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.
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| Issue: | Common shares
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| Amount: | $2,354,201
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| Shares: | 692,412
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| Price: | $3.40
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| Warrants: | For 346,206 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $4.25
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| Agent: | Maxim Group LLC
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| Pricing date: | May 27
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| Settlement date: | June 2
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| Stock symbol: | NYSE: REED
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| Stock price: | $3.85 at close May 26
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| Market capitalization: | $37.47 million
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