Reed’s Inc. has until late June to submit a compliance plan.
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Norwalk-based Reed's Inc. said it has received a notice from the NYSE American stock exchange that it no longer meets certain continued listing standards related to stockholders' equity.
The company said it received the notice May 29 after reporting stockholders' equity of $2.7 million as of March 31 and net losses in each of its past five fiscal years.
Reed's said it has until June 28 to submit a plan outlining how it intends to regain compliance. The exchange has given the company until Nov. 29, 2027, to meet the requirements.
The notice comes as Reed's continues efforts to improve its financial performance. In March, CEO Cyril Wallace stepped down less than a year after being hired to lead a turnaround effort. Former Chief Operating Officer Neal Cohane was named interim CEO.
Last month, Reed's reported first-quarter sales fell 29% to $7.1 million from $10 million a year earlier. Its net loss widened to $6.5 million from $2 million.
The company said it has taken additional steps to cut costs and improve operations, including reducing headcount and marketing spending, restructuring its Amazon fulfillment operations, and reviewing pricing and supply chain practices.
Reed's stock will continue trading on the NYSE American while the company works to regain compliance, provided it meets the exchange's other listing requirements.
Founded in 1989, Reed's makes ginger beverages and craft sodas under the Reed's, Virgil's and Flying Cauldron brands. Its products are sold in more than 32,000 stores nationwide.
