Reed's Announces Closing of $5.0 Million Private Placement and Board Updates

September 16, 2025 16:05 ET | Source: Reeds, Inc. NORWALK, Conn., Sept. 16, 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 the closing of a securities purchase agreement for a private investment in public equity (“PIPE”) financing. The transaction, which closed on September 15, 2025, generated gross proceeds of $5.0 million. Pursuant to the terms of the securities purchase agreement, the Company sold an aggregate of 5,000,000 shares of its common stock at a price of $1.00 per share. The Company intends to use the net proceeds from the offering for working capital and general corporate purposes. “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. “The proceeds will enhance our working capital position, giving us greater flexibility to invest in key areas such as personnel, marketing and product innovation. We believe our fortified balance sheet will enable us to strengthen our brand presence, expand market share, and position Reed’s for sustainable growth and profitability ahead.” In addition to the PIPE financing, the Company has appointed corporate governance advisor and securities litigation expert, Michael Tu, to its Board of Directors (“Board”), effective September 15, 2025. Mr. Tu replaces Lee Edwards, who has resigned to pursue other interests. Mr. Tu brings nearly three decades of experience in corporate governance and securities law, advising and representing boards, committees and executives at numerous public and private companies. He spent approximately 20 years as a partner at Orrick and Cooley, leading securities litigation and enforcement practices and providing counseling on disclosure, regulatory investigations, and fiduciary matters. Mr. Tu has also taught board governance and risk management at Stanford University’s Senior Executive Leadership Program and University of California, Los Angeles’s Director Training Program, and has been recognized by Chambers USA, Martindale-Hubbell, Legal 500, and Best Lawyers in America for securities litigation. Mr. Tu 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. Mr. Wallace added, “We thank Lee for his many contributions and thoughtful guidance during his time on the Board. As we look to the next phase of Reed’s evolution, we’re pleased to welcome Michael to the team. We believe his extensive background in corporate governance and securities law will be invaluable as we continue to strengthen our foundation as a public company, enhance our governance practices, and position the business for sustainable, long-term growth.” For more information, please refer to the Company’s Form 8-K filed today, September 16, 2025, with the Securities and Exchange Commission. About Reed's, Inc.Reed’s is an innovative company and category leader that provides the world with high quality, premium and better-for-you sodas. Established in 1989, Reed's is a leader in craft beverages under the Reed’s®, Virgil’s® and Flying Cauldron® brand names. The Company’s beverages are now sold in over 32,000 stores nationwide. Reed’s is known as America's original ginger beer brand. Crafted using real ginger and premium ingredients, Reed’s portfolio includes ginger beers, ginger ales, ready-to-drink ginger mules and hard ginger ales in both classic and zero sugar varieties. The brand also recently launched a new functional soda line featuring adaptogenic ingredients. Virgil's® is an award-winning line of craft sodas, made with the finest natural ingredients and without GMOs or artificial preservatives. The brand offers an array of great tasting, bold flavored sodas including Root Beer, Vanilla Cream, Black Cherry, Orange Cream, and Cola. Flying Cauldron® is a non-alcoholic butterscotch beer prized for its creamy vanilla and butterscotch flavors. Sought after by beverage aficionados, Flying Cauldron is made with natural ingredients and no artificial flavors, sweeteners, preservatives, gluten, or caffeine. For more information, visit drinkreeds.com, virgils.com and flyingcauldron.com. Forward-Looking Statements Statements in this release that are not historical are forward-looking statements. These forward- looking statements are typically identified by terms such as “aim,” "believe," "look forward to,” "can," “will,” “realize,” “deliver,” and similar expressions. Forward-looking statements include, but are not limited to, statements about the anticipated benefits of our strategic initiatives and investments, and our ability to achieve our strategic objectives, expand our business and generate long-term value. These forward-looking statements are based on current expectations. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties, and assumptions, many of which involve factors or circumstances that are beyond our control. These risks could materially impact our ability to access raw materials, production, transportation and/or other logistics needs. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Reed’s actual results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include, but are not limited to: our ability to compete successfully; our ability to manage growth, including the expansion of our business to markets in Asia; our ability to refinance our credit facility on favorable terms, or at all; risks associated with new product releases; the impacts of inflation; risks that customer demand may fluctuate or decrease; our ability to attract and retain qualified management and personnel; our ability to develop and expand strategic and third party distribution channels; our dependence on third party suppliers, co-packers and distributors; our ability to continue to innovate; protection of intellectual property; inventory shortages or write-offs; general political or destabilizing events, including the wars in Ukraine and Israel; the effect of evolving domestic and foreign government regulations, including those addressing tariffs, data privacy and cross-border data transfers; and other risks detailed from time to time in Reed’s public filings, including Reed’s annual report on Form 10-K filed on March 28, 2025, as amended by Reed’s quarterly report on Form 10-Q for the period ended June 30, 2025 filed on August 13, 2025. These forward-looking statements are based on current expectations and speak only as of the date hereof. Reed’s assumes no obligation and does not intend to update these forward-looking statements, except as required by law. Investor Relations Contact Sean Mansouri, CFA or Aaron D’SouzaElevate IRir@reedsinc.com(720) 330-2829

Reed's Announces Closing of $5.0 Million Private Placement and Board Updates

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