Company Bolsters Working Capital for Growth Initiatives
Los Angeles, California, Feb. 4, 2011 — Reed’s, Inc. (NASDAQ:REED – News) (OTC.BB:REEDP – News), maker of top-selling sodas in natural food stores nationwide, 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.
Mr. 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.”
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.
Source Capital Group, Inc. acted as the exclusive placement agent for the transaction.