Reed’s completed a private stock sale to its majority shareholder, D&D Source of Life Holding, bringing in about $10 million in gross proceeds. The capital raise also meets a minimum equity-funding requirement under the company’s amended senior secured loan agreement.
- The sale closed on November 9. Reed’s issued shares of common stock to D&D Source of Life under an agreement signed October 28.
- The company received approximately $10 million before offering expenses, which Reed’s is responsible for paying. The net proceeds will therefore be lower.
- The proceeds satisfy a requirement that Reed’s receive at least $10 million in cash equity contributions by November 20 under its amended senior secured loan agreement.
What changes: Reed’s has received the required equity funding, and its majority shareholder provided the investment. The announcement does not specify the number of shares issued or the resulting ownership percentage.