Reed's (REED) Announces Proposed Public Offering of Common Stock

Reed’s Inc. (NASDAQ: REED), owner of the nation’s leading portfolio of handcrafted, all-natural beverages, today announced that it intends to offer shares of its common stock in an underwritten public offering. Reed’s also expects to grant to the underwriters of the offering a 45-day option to purchase additional shares of common stock offered in the underwritten public offering on the same terms and conditions. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Roth Capital Partners is acting as sole book-running manager for the offering. National Securities Corporation, a wholly owned subsidiary of National Holdings, Inc. (NASDAQ: NHLD) is acting as co-manager.

Reed’s intends to use the net proceeds of the offering for the repayment of approximately $4.6 million under its senior credit facility and approximately $4.0 million for the repayment of its Subordinated, Convertible, Non-Redeemable Secured Note (the "Raptor Note") in favor of Raptor/ Harbor Reeds SPV, LLC originally issued April 21, 2017. Reed’s intends to use the remaining proceeds to fund working capital and for general corporate purposes. In addition Raptor/ Harbour Reeds SPV, LLC has agreed that the remaining approximately $1.0 million outstanding under the Raptor Note will be satisfied by issuance of approximately $1.0 million in shares of Reed’s common stock in a private placement transaction at the public offering price.

A shelf registration statement relating to the shares of common stock to be issued in the proposed offering was filed with the Securities and Exchange Commission (the "SEC") and is effective.

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