Norwalk-based Reed’s Inc., the maker of Reed’s ginger beer and Virgil’s craft sodas, is planning a stock and warrant offering that could raise up to $10.7 million as it seeks to move its shares to a national securities exchange, according to a recent federal filing.
In a Dec. 2 filing with the U.S. Securities and Exchange Commission, the company said it plans to sell up to 1.58 million shares of common stock, each paired with a warrant allowing investors to buy one additional share later. If the underwriters exercise their full option to purchase additional securities, the deal could bring in roughly $10.7 million before expenses.
Reed’s estimates it would receive net proceeds of about $9 million from the sale after underwriting discounts and offering costs, based on an assumed public offering price of $6.32 per share. The company said it intends to use the funds for growth initiatives, working capital and other general corporate purposes, which may include repaying debt.
Reed’s also said it could use a portion of the proceeds for potential acquisitions or investments, but noted it has no current commitments to do so.
The offering follows a 1-for-6 reverse stock split Reed’s completed on Oct. 31. The split reduced the number of outstanding shares and lifted the company’s trading price, which can help meet listing requirements. Reed’s said it has applied to list its stock on the NYSE American exchange under the symbol “REED.”
Its shares currently trade over-the-counter.
Reed’s markets itself as a branded beverage company focused on natural, “better-for-you” products. Its drinks are sold through national retailers and distributors, and the company uses outside bottlers to manufacture its products rather than owning production facilities.
The company has been undergoing a turnaround under new CEO Cyril Wallace, a former PepsiCo executive who took over in May. The company has posted annual losses for more than a decade, including a 15% revenue drop to $37.9 million in 2024, according to regulatory filings.
Wallace previously told HBJ his priorities include fixing supply-chain imbalances, improving brand awareness and pursuing just-in-time inventory strategies to reduce costs.
