Reed’s, Inc. completed a $10 million public offering on December 5, 2025, selling 2.5 million shares of common stock and 2.5 million warrants at a combined price of $4.00 per share. The warrants, exercisable immediately at $4.50, provide holders the right to purchase additional shares over a five‑year period.
The offering is scheduled to close on or about December 8, 2025, and the company expects gross proceeds of roughly $10 million. The transaction is part of a broader plan to strengthen Reed’s balance sheet and fund product‑innovation and market‑expansion initiatives.
On the same day, Reed’s uplisted its common stock to the NYSE American exchange, terminating trading on the OTCQX Best Market. The uplisting is intended to increase liquidity, broaden the investor base, and provide greater visibility to institutional investors.
Reed’s has faced revenue declines and margin compression in recent quarters. In Q2 2025, net sales fell to $9.5 million from $11.9 million year‑ago, and gross margin dropped to 8% from 32%. Q3 2025 saw a modest 4% sales increase to $7.0 million, with gross margin at 17% versus 18% year‑ago. The company cited lost retailer placements, higher operating expenses, and inventory write‑offs as key drivers of the margin squeeze.
CEO Cyril Wallace said, “Uplisting to the NYSE American marks a significant milestone for Reed’s. We expect the uplisting will provide enhanced visibility and expand our investor base, while also improving liquidity for our shares.” He added, “Our third‑quarter results reflect steady operational improvements and continued progress against our plan to strengthen Reed’s foundation for long‑term growth and profitability.”
The capital raised will support Reed’s focus on functional beverage innovation, including the recent launch of its Multifunctional Soda Line in May 2025, and the expansion of its distribution network. The company is also investing in rebuilding retailer relationships and implementing operational efficiencies to address the recent margin pressures.
The combination of a fresh capital infusion and a higher‑profile exchange listing positions Reed’s to accelerate growth in the competitive functional beverage market while addressing the financial challenges it has faced in the past year. The move signals management’s confidence in the company’s turnaround strategy and its readiness to pursue new opportunities with a stronger balance sheet.
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