Reed’s Inc. secures $5 million in private financing, appoints new director

NORWALK, Conn. - Reed’s Inc. (OTCQX:REED), a producer of natural ginger beverages with a market capitalization of $46.73 million, announced Tuesday it has closed a $5 million private investment in public equity (PIPE) financing through the sale of 5 million common stock shares at $1.00 per share. According to InvestingPro data, the company’s stock has shown strong momentum with a 59.96% year-to-date return.

The transaction, which closed on September 15, will provide working capital and support general corporate purposes, according to the company’s statement.

"This financing represents an important step forward in our plan to accelerate growth and build long-term shareholder value," said Cyril Wallace, Chief Executive Officer of Reed’s, in the press release.

Simultaneously, the company appointed Michael Tu to its Board of Directors, effective September 15. Tu, who brings nearly 30 years of experience in corporate governance and securities law, replaces Lee Edwards, who resigned to pursue other interests.

Tu previously served as a partner at Orrick and Cooley for approximately 20 years, leading securities litigation and enforcement practices. He holds a Juris Doctor from the University of California School of Law, Los Angeles, and a Bachelor of Arts from the University of California, Berkeley.

Reed’s, established in 1989, produces ginger beers, ginger ales, ready-to-drink ginger mules, and hard ginger ales under its Reed’s brand. The company also owns the Virgil’s and Flying Cauldron beverage brands, with products available in over 32,000 stores nationwide.

The company filed a Form 8-K with the Securities and Exchange Commission on September 16 with additional details about these developments.

In other recent news, Reed’s Inc. reported a significant decline in its second-quarter 2025 financial results. The company experienced a drop in net sales to $9.5 million, down from $11.9 million in the same period last year. Reed’s faced challenges such as lost retailer placements and rising operating expenses, contributing to a net loss of $6 million, or -$0.13 per share. The gross margin also decreased substantially to 8%, compared to 32% in the previous year. Despite these setbacks, the company’s stock saw a modest increase. These developments highlight the financial difficulties Reed’s Inc. is currently navigating.

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