NORWALK, Conn., Nov. 18, 2025 (GLOBE NEWSWIRE) -- Reed’s, Inc. (OTCQX: REED) (“Reed’s” or the “Company”), owner of the nation’s leading portfolio of handcrafted, natural ginger beverages, today announced that it expects its shares of common stock to be approved for listing on the NYSE American LLC stock exchange (“NYSE American”). The Company expects that its common stock will begin trading on the NYSE American under the symbol, “REED,” at the opening of trading on or about November 21, 2025, subject to con ...

Group 1 - The U.S. IPO market saw two small IPOs and three SPACs listed last week, with five IPOs and four SPACs filing initial applications [1][2] - Off The Hook YS (OTH) priced its reduced IPO at the lower end of the range, raising $15 million with a market cap of $95 million, but its stock fell by 8% [1] - Phaos Technology (POAS) also priced its IPO at the lower end, raising $14 million with a market cap of $114 million, and its stock remained flat [1] Group 2 - Three SPACs completed pricing last week: Alussa Energy Acquisition II (ALUB.U) raised $250 million targeting energy and power infrastructure, Evolution Global Acquisition (EVOXU) raised $210 million focusing on critical minerals, and Blueport Acquisition (BPACU) raised $50 million [2] - Five companies filed for IPOs last week, including Klook (KLK) seeking $400 million, Grayscale (GRAY) aiming for $100 million, and Reed's (REED) targeting $10 million [2][4] Group 3 - Upcoming IPOs include Central Bancompany (CBC) planning to raise $400 million with a market cap of $5.365 billion, and Gloo Holdings (GLOO) aiming for $100 million with a market cap of $801 million [5][7] - Regentis Biomaterials (RGNT) plans to raise $11 million with a market cap of $62 million, focusing on a hydrogel implant for knee cartilage pain [6][7]

作为一家品牌饮料企业，Reed's旗下拥有Reed's和Virgil's两大品牌，产品线涵盖50种天然、高端及功能 性饮品。通过7家合作包装商和5个分销中心组成的网络，其产品已进驻全美超过32000个销售点，并覆 盖加拿大、英国、南非、加勒比地区、欧盟及亚太市场，建立起约9000个分销节点。在规模达450亿美 元的美国碳酸软饮市场中，公司凭借全糖与零糖有机姜汁汽水、酒精度7%的即饮酒精姜饮、酒精度5% 的烈性姜汁汽水，以及采用有机原料的多功能苏打水系列参与竞争。 这家成立于1991年、总部位于康涅狄格州诺沃克的公司，在截至2025年9月30日的十二个月内实现营收 3600万美元。公司计划延用股票代码"REED"在纽约证券交易所美国板块上市，本次发行由A.G.P.担任 独家账簿管理人。 以姜汁饮品闻名的饮料制造商Reed's(REED.US)于周三向美国证券交易委员会(SEC)提交首次公开募股 (IPO)申请，拟募资最高1000万美元。目前，该公司在OTC市场挂牌交易，股票代码为REED。 根据申报文件，Reed's计划以每股7.54美元(该股在OTC市场的最新成交价)发行130万股，募集1000万美 元资金。 ...

Financial Performance - For the nine months ended September 30, 2025, gross billing increased by 4% to $9,279,000 compared to $8,901,000 for the same period in 2024[99]. - Net sales for the same period rose by 4% to $7,033,000 from $6,752,000[99]. - The company reported a net loss of $3,982,000 for the three months ended September 30, 2025, a decrease of 4% compared to a net loss of $4,150,000 in the same period of 2024[99]. - Gross billing for the nine months ended September 30, 2025, decreased by 3% to $31,861 million compared to $32,864 million in the same period last year[121]. - Net sales declined by 6% to $26,585 million from $28,221 million, attributed to lower volumes with recurring national customers and higher promotional allowances[128]. - Gross profit fell by 36% to $5,433 million, resulting in a gross margin of 20%, down from 30%[131]. - Loss from operations increased by 161% to $11,638 million compared to a loss of $4,457 million in the same period last year[136]. - Net loss for the nine months ended September 30, 2025, was $12,061 million, a 33% increase from $9,035 million[140]. - Modified EBITDA for the nine months ended September 30, 2025, was $(10,205) million, compared to $(3,323) million in the same period last year[140]. Cost and Expenses - The average cost of shipping and handling increased to $2.84 per case from $2.66 per case year-over-year[93]. - General and administrative expenses surged by 60% to $2,861,000, representing 41% of net sales, compared to 27% in the prior year[99]. - Cost of goods sold (COGS) increased by $272 in Q3 2025, with COGS as a percentage of net sales rising to 83% from 82% in the same period last year[107]. - Gross margin decreased to 17% in Q3 2025, down from 18% in the same period last year[109]. - Delivery and handling expenses decreased by $179 to $1,100 in Q3 2025, representing 16% of net sales, down from 19% in the same period last year[110]. - Total operating expenses rose by 32% to $17,071 million, with general and administrative expenses increasing by 65% to $8,633 million[135]. - Total cost of goods sold per case increased to $13.20 in Q3 2025, up from $12.94 in the same period last year[108]. Cash Flow and Financing - Cash used in operations was $13,230 million, primarily due to operating losses and working capital investments[142]. - As of September 30, 2025, the company had a cash balance of $4,136 million and no remaining availability under its Senior Secured Loan[142]. - The Company has existing cash of $4,136 and expects this, along with cash generated from operations and access to committed financing, to be sufficient to fund its operating plan for at least twelve months[148]. - Net cash used in operating activities totaled $13,230 for the nine months ended September 30, 2025, an increase from $2,254 for the same period in 2024, primarily due to operating losses and investment in strategic growth initiatives[153]. - Net cash provided by financing activities was $7,147 for the nine months ended September 30, 2025, compared to $2,015 for the same period in 2024, driven by proceeds from the sale of common stock in two private placements[155]. - Management may seek additional funding through equity, mezzanine, or debt securities, but there is no assurance that such financing will be available on favorable terms[150]. - The Company’s ability to obtain additional financing is subject to market conditions, performance, and investor sentiment[150]. Strategic Initiatives - The company formed a wholly owned subsidiary, Reed's (Asia) Limited, as part of its strategic expansion into the Asia Pacific region[90]. - A private placement on September 12, 2025, raised $5,000,000 by issuing 833,330 shares at $6.00 per share[94]. - The company amended its Senior Secured Loan Agreement, reducing the revolving credit commitment to $9,250,000 from $10,000,000[96]. - The Company is taking actions to improve operating performance, including product portfolio optimization and streamlining operations, but may face challenges in executing these actions[151]. - If the Company cannot raise additional capital or improve operating performance, it may need to curtail certain operations[152]. Operational Challenges - The company continues to face supply chain challenges, including increased lead times and inflation in raw materials and logistics costs[92]. - Modified EBITDA does not reflect cash expenditures for capital expenditures or changes in working capital needs[149]. - Management regularly evaluates key factors and assumptions for financial estimates, which could differ materially from actual results[156].

Financial Data and Key Metrics Changes - Net sales for Q3 2025 increased 4% to $7.0 million compared to $6.8 million in the year-ago quarter, driven by higher volumes of Reed's branded products with recurring national customers [13] - Gross profit for Q3 2025 remained flat at $1.2 million, with gross margin decreasing to 17% from 18% in the previous year, primarily due to $0.1 million of inventory write-offs [13] - Net loss improved to $4.0 million, or negative $0.48 per share, compared to $4.2 million, or negative $4.91 per share in Q3 2024 [14] - Modified EBITDA loss was $3.9 million in Q3 2025 compared to $3.0 million in Q3 2024 [15] Business Line Data and Key Metrics Changes - Core product sales saw a 4% year-over-year growth across top accounts, including Kroger, Sprouts Farmers Market, and Giant Carlisle, indicating strong momentum within the core ginger ale, ginger beer, and Virgil's portfolio [5] - The company is focusing on regaining lost distribution with key regional wins at Harmons, Bashas', and Festival Foods, while also expanding presence in underrepresented channels like food service and convenience [6] Market Data and Key Metrics Changes - Delivery and handling costs were reduced by 14% to $1.1 million during Q3 2025, reflecting early progress from operational improvements [14] - The transition from glass to cans is expected to improve cost efficiency and sustainability, with anticipated margin strengthening as the transition progresses [11] Company Strategy and Development Direction - The company is redefining its approach with distributors, moving from short-term promotions to a fully integrated 52-week strategy to enhance predictability and control over trade spend [4] - A complete restage of the functional soda line is slated for July 2026, aimed at reestablishing Reed's as a category disruptor [7] - The leadership team has been strengthened with key appointments to enhance marketing, commercial execution, and governance [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational foundation and key initiatives that will drive long-term growth and profitability, with a focus on improving margins and optimizing operations [12] - The company is preparing for an uplist to a major exchange, which is expected to enhance visibility and broaden access to institutional capital [12] Other Important Information - The company completed a review of finished goods inventory, writing down approximately $114,000 of obsolete products as part of a broader effort to rationalize SKUs [10] - A 1-for-6 reverse stock split was implemented effective October 31, 2025, to facilitate uplisting [12] Q&A Session Summary Question: Expectations for distribution gains and shelf resets - Management highlighted the restructuring of the sales team to focus on channels and customers not currently targeted, with plans for a core product restage in 2026 [18][19] Question: Transition from bottles to cans and P&L impacts - The transition is expected to yield long-term cost savings and margin benefits, with the process taking several months to complete [22][23] Question: Marketing strategy in a competitive category - The company plans to adopt a targeted and strategic approach to marketing spend, focusing on grassroots campaigns to build brand equity [25][26] Question: Timing for uplisting and regaining lost distribution - The reverse stock split was a milestone for uplisting, and management is actively working to regain lost distribution with key regional accounts [29][32] Question: Challenges in launching new products - Management believes that operational stability will help in regaining retailer confidence when launching new products [34]

Financial Performance - Net sales increased by 4% to $7.0 million compared to $6.8 million in Q3 2024, driven by higher volumes of Reed's branded products [4][7]. - Gross profit remained flat at $1.2 million, with a gross margin of 17%, down from 18% in the prior year; excluding inventory write-offs, gross profit was $1.3 million with a margin of 19% [4][8]. - Net sales for the three months ended September 30, 2025, were $7,033 million, an increase from $6,752 million in the same period of 2024, while net sales for the nine months ended September 30, 2025, decreased to $26,585 million from $28,221 million in 2024 [29]. - Gross profit for the three months ended September 30, 2025, was $1,224 million, slightly up from $1,215 million in 2024, but gross profit for the nine months ended September 30, 2025, dropped to $5,433 million from $8,459 million in 2024 [29]. - The net loss for the three months ended September 30, 2025, was $3,982 million, compared to a net loss of $4,150 million in 2024, while the net loss for the nine months ended September 30, 2025, increased to $12,061 million from $9,035 million in 2024 [29]. - Loss per share for the three months ended September 30, 2025, was $(0.48), an improvement from $(4.91) in 2024, while for the nine months, it was $(1.54) compared to $(12.10) in 2024 [29]. Expenses and Costs - Delivery and handling costs decreased by 14% to $2.50 per case, down from $2.99 per case in Q3 2024 [4][9]. - Selling, general and administrative expenses rose to $4.2 million from $3.1 million, primarily due to investments in personnel and marketing [4][10]. - Total operating expenses for the three months ended September 30, 2025, increased to $5,327 million from $4,353 million in 2024, with significant increases in general and administrative expenses from $1,791 million to $2,861 million [29]. Cash Flow and Debt - Cash used in operations was $2.8 million, contrasting with $1.1 million of cash provided by operating activities in Q3 2024 [4][12]. - The company had cash at the end of the period of $4,136 million, down from $10,391 million at the beginning of the period [33]. - Cash flows from operating activities for the nine months ended September 30, 2025, showed a net cash used of $13,230 million, significantly higher than $2,254 million in 2024 [33]. - The company repaid approximately $650,000 of debt and refinanced its credit facility to strengthen its balance sheet [5]. Management and Strategy - Management is preparing for an anticipated uplist to a major stock exchange to enhance visibility and improve liquidity [5]. - Two key appointments were made to strengthen the leadership team, aimed at advancing the 2026 go-to-market strategy and rebranding initiatives [3]. Modified EBITDA - Modified EBITDA loss was $3.9 million, compared to a loss of $3.0 million in the same quarter last year [4][11]. - The company reported a modified EBITDA of $(3,925) million for the three months ended September 30, 2025, compared to $(2,998) million in 2024, and $(10,205) million for the nine months ended September 30, 2025, compared to $(3,323) million in 2024 [34].

Core Insights - Reed's, Inc. reported a 4% increase in net sales for Q3 2025, reaching $7.0 million compared to $6.8 million in Q3 2024, driven by higher volumes of Reed's branded products with recurring national customers [5][7] - The company is focused on operational improvements, margin enhancement, and sales growth, with strategic leadership appointments aimed at advancing its marketing and sales initiatives [3][9] - A reverse stock split was executed on October 31, 2025, with approximately 8,945,620 shares outstanding post-split, aimed at enhancing visibility and liquidity [4] Financial Performance - Gross profit for Q3 2025 remained flat at $1.2 million, with a gross margin of 17%, down from 18% in the previous year, primarily due to $0.1 million in inventory write-offs [6][9] - Selling, general, and administrative expenses increased to $4.2 million from $3.1 million, reflecting investments in personnel and marketing [9] - The net loss improved to $4.0 million, or $(0.48) per share, compared to a net loss of $4.2 million, or $(4.91) per share, in Q3 2024 [9][10] Operational Highlights - Delivery and handling costs decreased by 14% to $2.50 per case, down from $2.99 per case in the previous year, indicating improved operational efficiency [8] - Cash used in operations for Q3 2025 was $2.8 million, a significant increase compared to $1.1 million of cash provided by operating activities in Q3 2024 [11] - As of September 30, 2025, the company had approximately $4.1 million in cash and $9.2 million in total debt, a decrease from $10.4 million in cash and $9.6 million in total debt at the end of 2024 [11] Strategic Initiatives - The company is preparing for an anticipated uplist to a major stock exchange, which is expected to enhance visibility and broaden access to institutional capital [3] - Key leadership appointments include Tina Reejsinghani as Chief Marketing Officer and Keith Johnson as Chief Go-To-Market and Customer Officer, aimed at driving growth and supporting rebranding initiatives [3] - The company is actively identifying opportunities to streamline operations to enhance efficiency and scalability [3]

Core Points - Reed's, Inc. will host a conference call on November 4, 2025, at 8:30 a.m. Eastern time to discuss its financial results for the three and nine months ended September 30, 2025 [1][2] - The conference call will include a question-and-answer period and will be accessible via toll-free and international dial-in numbers [2] - The call will also be available for live broadcast and replay on the investor relations section of the company's website [3] Company Overview - Reed's, Inc. is a leader in handcrafted, natural ginger beverages, established in 1989, and offers a portfolio of premium sodas under the Reed's®, Virgil's®, and Flying Cauldron® brand names [4] - The company's beverages are sold in over 32,000 stores nationwide, highlighting its extensive market reach [4] - Reed's is recognized as America's original ginger beer brand, with a product line that includes ginger beers, ginger ales, and a new functional soda line featuring adaptogenic ingredients [5] Product Lines - The Virgil's® brand offers award-winning craft sodas made with natural ingredients, free from GMOs and artificial preservatives, including flavors like Root Beer and Vanilla Cream [6] - Flying Cauldron® is a non-alcoholic butterscotch beer known for its creamy vanilla and butterscotch flavors, made with natural ingredients and no artificial additives [7]

Core Viewpoint - Reed's, Inc. has successfully closed a PIPE financing transaction, raising $5.0 million through the sale of 5,000,000 shares at $1.00 per share, aimed at enhancing working capital and supporting growth initiatives [1][2]. Group 1: Financing Details - The PIPE financing closed on September 15, 2025, generating gross proceeds of $5.0 million [1]. - The company sold 5,000,000 shares of common stock at a price of $1.00 per share [1]. Group 2: Strategic Intent - The proceeds from the financing will be used for working capital and general corporate purposes, allowing the company to invest in personnel, marketing, and product innovation [2]. - The CEO emphasized that the enhanced working capital position will provide greater flexibility to strengthen brand presence and expand market share [2]. Group 3: Leadership Changes - Michael Tu has been appointed to the Board of Directors as a corporate governance advisor and securities litigation expert, effective September 15, 2025, replacing Lee Edwards [2][3]. - Mr. Tu brings nearly three decades of experience in corporate governance and securities law, having previously worked as a partner at Orrick and Cooley [3]. Group 4: Company Overview - Reed's, Inc. is a leader in handcrafted, natural ginger beverages, with a portfolio that includes ginger beers, ginger ales, and a new functional soda line [5][6]. - The company was established in 1989 and its beverages are sold in over 32,000 stores nationwide [5].

Core Insights - Reed's, Inc. is undergoing a corporate reorganization to enhance operational efficiency and position the company for long-term success [2][4] - The company is making key investments to strengthen its commercial strategy, including the establishment of a dedicated field sales organization [2] - Tina Reejsinghani has been appointed as the new Chief Marketing Officer, bringing over 20 years of global marketing experience [3][4] Organizational Changes - The reorganization is part of a broader strategic realignment aimed at strengthening the company's foundation for future growth [2] - Chris Burleson, the Chief Commercial Officer, has resigned effective September 12, 2025, after contributing to strategic growth initiatives since February 2023 [4][5] Leadership Appointments - Tina Reejsinghani's previous experience includes leading marketing for a $500 million Cognac portfolio, achieving 30% year-over-year growth [3] - Reejsinghani's expertise in brand storytelling and experiential marketing is expected to play a crucial role in Reed's growth and brand expansion [3][4] Company Overview - Reed's is a leader in handcrafted, natural ginger beverages, with a portfolio that includes ginger beers, ginger ales, and a new functional soda line [6] - The company operates under the brand names Reed's®, Virgil's®, and Flying Cauldron®, with products sold in over 32,000 stores nationwide [5][6]