REED - Reed's raises $11.25M in convertible notes offering

Reed's (NASDAQ:REED) closed a private placement of senior secured convertible notes in principal amount of $11.25M. The principal amount of the notes carries a 10% coupon, of which 5% is payable in cash and 5% is payable in kind and capitalized to the outstanding principal amount of the notes. The purchasers will have the exclusive option to buy up to an additional $12M of notes on similar terms. Notes are convertible into shares of ~$0.24/share and will mature on May 9, 2025; conversion price represents a premium of ~10%. The company plans to use the gross proceeds of ~$11.1M for repaying partial outstanding borrowings under the company's existing ABL facility and for general working capital purposes. Shares trading 10.1% higher premarket.

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Reed's raises $11.25M in convertible notes offering