Chris Reed to Appear on WGN Radio’s Garry Meier Afternoon Radio Show
November 16th, 2009 In Newsletter Updates | No CommentsEmmy Award winning Chicago radio host endorses Reed’s products
Live interview will air November 17th at 1:30 PM central time
LOS ANGELES, November 16, 2009 (MARKETWIRE) — Reed’s, Inc. (Nasdaq:REED), maker of the top-selling sodas in natural food stores nationwide, announced today that Founder, Chairman and CEO Mr. Chris Reed will be a guest on WGN’s Garry Meier Afternoon radio talk show. Mr. Reed’s interview will be conducted live at 1:30 PM central daylight time on WGN radio AM 720. A live Internet feed is available at: http://www.wgnradio.com/about/listen/
WGN radio has been broadcasting to Chicagoland listeners for over 80 years. The Station is the home voice of the Cubs, Blackhawks and Wildcats professional sports teams.
“Garry Meier is a household name in Chicago,” commented Mr. Chris Reed, Founder, Chairman and CEO of Reed’s Inc. “He’s a smart, witty and fun radio personality. He’s the kind of customer we love at Reed’s, and he obviously enjoys our products enough to have mentioned them previously on his show.”
“When we reached out to WGN they responded willingly. We immediately realized that this was a great opportunity for Reed’s, especially since we are exhibiting at the Private Label Marketing Association (PLMA) 2009 Private Label Trade Show in Chicago November 15th -17th. The timing is perfect. Garry has been giving Reed’s a lot of mention and we sincerely appreciate his enthusiasm.”
Meier rose to prominence in Chicago as part of one of the most successful number one radio duos in the country, ‘The Steve & Garry Show.’ The fifteen-year run garnered international publicity, as well as an Emmy for the TV show ‘Greetings From Graceland.’ Meier also gained renown for his highly successful eight-year run on ‘The Roe & Garry Show.’ In addition to these accomplishments, Meier has displayed his wit and energy as a solo host and as a feature reporter for WGN-TV’s morning show.
A New Video Presentation by Chris Reed, CEO & Founder of Reed’s Inc.
November 16th, 2009 In Newsletter Updates | No CommentsHere is a new video presentation by Chris Reed, CEO and founder of Reed’s Inc.
Please feel free to review this video at your leisure and the new website as well. We welcome any feedback you may have.
We are proud of this company and believe that Reed’s makes the best sodas in the world, naturally!
Thanks you for your continued interest in the company.
Reed’s, Inc. Announces Third Quarter 2009 Financial Results
November 16th, 2009 In Newsletter Updates | No CommentsCompany Completes Bottling Plant Upgrade and Begins Private Label Sales
LOS ANGELES, CA–(Marketwire – November 13, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, today announced its financial results for the third quarter ended September 30, 2009. Third Quarter and Nine Month 2009 Highlights: — Sales for the quarter ended September 30, 2009 were $4,027,000, a decrease of 5%, as compared to the prior year same period amount of $4,233,000. Sales for the 2009 nine month year-to-date period were $11.7 million, compared to $12.4 million in 2008; — Year-to-date EBITDA loss reduced to $129,000 versus an EBITDA loss of $2,141,000 in 2008 (see table); — Working capital increased to $1.5 million at 09/30/09, from $600,000 at 12/31/08; — Continued to maintain a much lower cost structure in 2009, than in 2008, covering both operating expenses and per-unit product costs; — Nine months gross 2009 profit margin consistent with prior year at 25% of sales; — Loss from operations during the nine months ended September 30, 2009 was $1,454,000 including non-cash impairment write downs on fixed assets of $641,000. Before impairment losses, the net loss from operations is $813,000, an improvement from the loss of $2,457,000 in the 2008 year period. Loss from operations in the three months ended September 30, 2009 was $280,000 mostly due to lower revenues with fixed plant costs, affecting margins. Additional Highlights: — Completed $300,000 brewery upgrade — Began private label production and sales to national accounts — Announced significant new distribution relationship in the Northeast — Expanded Reed’s and Virgil’s presence in over 300 A&P stores nationwide — Expanded Reed’s and Virgil’s into another 100 plus Weis Market stores Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. commented, “Our results for the quarter were impacted by the overall economic environment. In light of the dramatic recessionary climate and the sharp decreases in revenues that some other companies in our space have experienced, we feel that we fared rather well by outperforming the pack. This is a clear testament to our brand loyalty and the fact that we make some of the best natural sodas on the market.” He added, “As a result of the changing environment we have discovered that we have a unique asset which we feel will be of significant long-term benefit to the Company. We can provide our customers with customized private label products. This is something they want and are ready to buy as we have already received commitments from two customers for product in 2010 from the few accounts we initially reached out to. We are now talking with roughly 30 additional customers regarding this private label opportunity and expect to see additional sales shortly.” Reed continued, “An interesting outcome of the private label expansion is that it is resulting in new orders for our branded products as well.” He ended stating, “The private label business has the potential to significantly increase Reed’s revenues over the next several quarters. Our goal is to generate enough private label revenues to direct significant funding to marketing and sales of our core Reed’s and Virgil’s products.” Mr. Jim Linesch, CFO of Reed’s, Inc. stated, “Our financial results reflect our continued reduction in operating costs, as compared to the prior year period. While sales have fallen during this adverse economic period affecting the grocery industry, we believe that our customer relationships are expanding and will result in increasing sales of our branded products in 2010.” Mr. Linesch added, “Margins during the third fiscal quarter have remained consistent with earlier fiscal quarters, considering overall sales levels and fixed production costs. As we enter the 4th quarter, the Company is well positioned for an increasing backlog of private label business as well as strong sales increases of our branded product lines in 2010.”
Reed’s, Inc. to Showcase New Private Label Offerings at the Private Label Marketing Association (PLMA) 2009 Trade Show
November 16th, 2009 In Newsletter Updates | No CommentsExhibitors From 35 Countries Converge on Chicago’s Rosemont Convention Center With More Than 2,000 Exhibit Booths
LOS ANGELES, CA–(Marketwire – November 11, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it will be exhibiting at the Private Label Marketing Association (PLMA) 2009 Private Label Trade Show in Chicago, Illinois, November 15th – 17th. Reed’s will be located in Booth #1368.
PLMA is the only trade show devoted entirely to store brands. For almost 30 years, PLMA’s annual private label trade show has been the place where retailers and suppliers meet to build their private label businesses.
Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc., commented, “We made the decision to enter the private label business and have committed to building it to the point where it contributes significantly to our overall revenues. This exhibition is an important event for us to showcase our private label capabilities, meet buyers and distributors and forge new relationships. We think Reed’s is going to surprise a lot of people with our new private label initiatives, and we intend to make a lasting impression.”
Mr. Reed added, “We’ve already inked our first two private label deals with major national retailers and are in active conversations with more. I am confident that we will be increasing our private label accounts. We have re-tooled our bottling plant and energized our sales and marketing team, which has worked hard to establish a pipeline of private label business that should lead to a record year for Reed’s in 2010. We’re not ignoring our branded business at all; in fact our private label business has had a very positive effect on our branded business by increasing our relationship with major national chains.”
According to the PLMA, “Store brands now account for one of every five items sold in U.S. supermarkets, drug chains and mass merchandisers. They represent more than $83 billion of current business at retail and are achieving new levels of growth every year.”
The PLMA website reports that, “Americans are switching to store brands. Across all channels, consumers are buying more private label than ever before. Nielsen reports that private label sales have increased by 12% in supermarkets, drug chains and mass merchandisers since last summer. Total sales for the year reached $80 billion and unit market share rose to more than 22%. The trend is going to continue, too. According to a new Roper survey, more than 60% of all shoppers now say that they purchase store brands frequently, up from 40% just three years ago. Eight out of 10 consumers say that store brands are ‘as good or better’ than national brands, and nearly 20% of shoppers expect to buy more private label in the year ahead.”
More information on the PLMA 2009 Private Label Trade Show can be found at: http://plma.com/showinfo/showinfo2009.html
Reed’s, Inc. Updates Calendar for Rights Offering
November 7th, 2009 In Newsletter Updates | No CommentsLOS ANGELES, CA–(Marketwire – November 6, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that certain dates have been adjusted to the calendar for its previously announced rights offering of Series B Convertible Preferred Stock. Due to the November 11, 2009 holiday, the last day to buy stock and receive rights will be November 9, 2009, and the Shares will trade ex-rights on November 10, 2009. The record date remains unchanged at November 13, 2009. The complete updated calendar is as follows:
Important Dates
Last Day to Buy Stock and Receive Rights November 09, 2009(1)
Shares Trade Ex-Rights November 10, 2009
Record Date November 13, 2009
Subscription Period From November 16, 2009 to
December 14, 2009(2)
Rights Eligible for Trading November 17, 2009
Last Day Rights May Be Traded December 9, 2009(2)
Expiration Date December 14, 2009(2)
(1) Assumes three day settlement.
(2) Unless the offering is extended.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The securities may only be offered by means of a prospectus, additional copies of which may be obtained, when available, by contacting the information agent, MacKenzie Partners, Inc., at 105 Madison Avenue, New York, NY 10016, toll-free: (800) 322-2885, collect: (212) 929-5500.
Government Gets It Right This Time — The Defense Commissary Agency (DeCA) to Provide Natural Soda Alternatives to Military Personnel, Retirees and Their Families
November 7th, 2009 In Newsletter Updates | No CommentsReed’s, Inc. Receives First Purchase Order From DeCA to Provide Reed’s and Virgil’s Soda to Agency Operating a Worldwide Chain of 284 Commissaries
LOS ANGELES, CA–(Marketwire – November 3, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has received its first purchase order from the Military Supermarket organization, the Defense Commissary Agency (DeCA), headquartered at Fort Lee, Virginia.
Reed’s will initially provide 5 SKU’s of Reed’s and Virgil’s products, including: Reed’s Extra Ginger Brew, Reed’s Premium Ginger Brew, Virgil’s Root Beer, Virgil’s Cream Soda and Virgil’s Black Cherry Cream Soda.
“Reed’s is extremely proud to have our products being offered for sale in the commissaries serving our military families and retirees,” commented Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. “My Dad is a retired Army officer and early founding member of Reed’s, Inc. and this sale has great personal value to us both.” Chris added, “As a Military brat, I grew up shopping at the local army base commissary.” He continued, “I got my first hankering for premium non-alcoholic beverages when my family was stationed in Germany. My parents would go to local wineries and I would get all natural sparkling grape juice to drink. I remember I used to think, ‘Wow — my parents are missing out on the good stuff!’” Chris ended stating, “I guess that was my first inspiration to start my own natural soda company.”
In 2007, Military Commissaries sell $5.5 billion per year of groceries at 284 stores. Initial locations for distribution include: Fort Belvoir Army Base, VA (Largest Commissary in the U.S. and DeCA’s top store); Fort Meade, MD; Quantico Marine Corps Base, VA; Andrews Air Force Base, MD; Ft. Meyers, VA; Pax River Naval Base, MD; Walter Reed Military Hospital, MD; Bolling Air Force Base – Washington, DC; US Naval Academy – Annapolis, MD; and, Aberdeen Proving Grounds, MD.
The Defense Commissary Agency operates a worldwide chain of 284 commissaries providing groceries to military personnel, retirees and their families in a safe and secure shopping environment. Authorized patrons purchase items at cost plus a five-percent surcharge, which covers the costs of building new commissaries and modernizing existing ones. DeCA Shoppers save an average of more than 30 percent on their purchases compared to commercial prices. These savings are worth about $3,400 annually for a family of four.
“We have been working on securing the DeCA account for some time now,” commented Neal Cohane, Senior VP of Sales and Marketing for Reed’s, Inc. “Initially, we will be providing 5 SKU’s of Reed’s and Virgil’s products to DeCA locations on the East Coast. We hope to gradually roll-out to as many of the 284 stores DeCA operates as possible.”
Reed’s, Inc. Completes Acquisition of Sonoma Sparkler Brand
November 7th, 2009 In Newsletter Updates | No CommentsDeal marks the ‘maker of the top selling sodas in natural foods stores’ entrance into new market that exceeds $100 million year in sales
Asset purchase brings Reed’s six new brands of established premium sparkling juice with proven distribution
LOS ANGELES, October 28, 2009 (MARKETWIRE) — Reed’s, Inc. (Nasdaq:REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has purchased the brand and certain assets of Sonoma Sparkler, including the six beverages sold under the brand, for a price of $252,000. The Company commenced packing and selling the Sonoma Sparkler products in June 2009.
Branded sparkling juices sold in the 750ml size bottles represent a significant part of the overall beverage market. Two privately-held companies, Martinelli’s and Knudsen’s are generating roughly $50 million in sales from mainstream supermarket accounts alone. According to recent IRI data, Martinelli’s generated roughly $45 million per year in sales and Knudsen’s did roughly $5 million in sales of sparkling juices from this category.
Reed’s has proven its success in acquiring and growing brands. The company bought the Virgil’s brand less than 10 years ago when it was doing approximately $600,000 in sales. Sales have increased by 1200% in that period of time. Reed’s has expanded the SKU’s for Virgil’s to 10 items. Today Virgil’s is generating roughly $7.5 million in sales and over $2 million in gross profit on an annual basis.
Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. commented “The Sonoma Sparklers brand is a natural complement to our existing product lines. The sales are through our distribution channels and we share many of the same customers.” He added, “Sonoma Sparklers have great potential. These beverages are 750ml size celebration drinks, a category that is traditionally sold more heavily in the 4th quarter. This will enhance our seasonality-by bolstering fourth quarter sales. More strategically, it strengthens our 750ml production capabilities and re-focuses the efforts of David Cortz, the founder of Sonoma Sparkler, toward Reed’s business development in private label sales. David’s experience is invaluable in our launch into this new line of business.”
Mr. Reed continued, “While the Sonoma Sparkler brand products will comprise a small part of our overall revenues, the premium products fit nicely within our corporate strategy. They are comprised of all natural ingredients of the highest quality, with strong brand recognition and customer loyalty in the markets that are served.”
The purchase will be paid in cash from gross profits generated from sales of the Sonoma Sparklers brand over the next 24 months. The Company stated that because this was a cash purchase and did not involve stock, it will not result in any dilution to existing shareholders.
For more information about Sonoma Sparklers please visit: http://www.sonomacider.com
The Company has filed an 8K, which can be viewed at: http://www.sec.gov.
Reed’s Inc. and Jones Soda Co. Enter Into Letter of Intent Regarding Potential Merger; Jones CEO to Depart Grocers (AWG)
March 9th, 2010 In Newsletter Updates | No CommentsReed’s, Inc. Establishes New Relationship with Associated Wholesale Grocers (AWG)
March 4th, 2010 In Newsletter Updates | No CommentsSix Reed’s SKUs and Six Virgil’s SKUs now available to over 2500 retail outlets in the AWG network
LOS ANGELES, CA — (Marketwire – March 4) – Reed’s, Inc. (NASDAQ:REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has established a new retail relationship with Associated Wholesale Grocers (AWG). AWG has authorized six SKUs for the Reed’s Ginger Brew line and six SKUs for Virgil’s Soda line.
The 12 SKUs include: Reed’s Extra, Premium, Original, Raspberry, Cherry & Spiced Apple Ginger Brews; and Virgil’s Root Beer, Cream Soda, Black Cherry Cream Soda, Diet Root Beer, Diet Cream Soda & Diet Black Cherry Cream Soda.
Associated Wholesale Grocers (AWG) is a retailer-owned cooperative serving over 1900 retail member stores and 600 affiliated stores with a complete assortment of grocery, fresh meat, produce, specialty foods, health care, and general merchandise items. AWG and its subsidiaries, which operate through an extensive distribution network and eight distribution centers, deliver to retail outlets in 24 states. AWG recorded sales of $6.9 billion in 2008.
Mr. Eddie Pearson, Reed’s VP of Sales Southern Region, stated, “This partnership with AWG continues our focus on intelligently and methodically building our distribution coverage throughout the South to mainstream stores currently outside of our core customer base. ”
Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. commented, “AWG is a great addition to the Reed’s distribution system. Gaining access into Associated Wholesale Grocer gives us the potential to gain entry into 2500 retail supermarkets in 24 states. This continues our march across the U.S. to gain presence for our Reed’s & Virgil’s brands in mainstream supermarkets while driving sustained growth for the company and our shareholders.”
Reed’s, Inc. Begins Production and Shipment of its New Ginger-Based ‘Reed’s Rx’ Remedy for Nausea and Motion Sickness
March 2nd, 2010 In Newsletter Updates | No CommentsGinger has a tradition of 30 to 40 centuries of being used as a nausea relief –
Los Angeles, California, March 2, 2010 — Reed’s, Inc. (NASDAQ:REED – News) (OTC.BB:REEDP – News) (“Reed’s” or “the Company”), maker of the top-selling sodas in natural food stores nationwide, announced the introduction of its new ‘Reed’s Rx’ Natural Ginger Nausea Relief for the drug store channel. The Company has already begun producing and shipping its ‘Reed’s Rx’ Natural Ginger Nausea Relief to drug stores and has placed its first advertisements into drug store trade publications. The product is being launched in convenient 4-packs of 5.5-ounce cans and is a brew of fresh ginger, honey, pineapple juice, and lemon and lime juices with added vitamin B6.
“We have received many testimonials over the years from people who have used our products for motion sickness, morning sickness and nausea. In addition, ginger has a very long history of use as a remedy for nausea. It was documented to be used by the early Roman Empire in 1000 B.C. and shows up in early medical texts dating from 1600 B.C. As a result, we decided to create a new line of products based on the Reed’s Ginger Brew brand and geared for the drug store trade under the ‘Reed’s Rx’ brand,” stated Chris Reed, Founder, Chairman and Chief Executive Officer of Reed’s, Inc. They are both delicious and effective.”
Mr. Neal Cohane, Senior VP of Sales and Marketing of Reed’s, Inc., commented, “The ‘Reed’s Rx’ product line represents an exciting new growth area, and is a testament to the naturalness and healthiness of our products, which can be used to treat nausea and motion sickness. This new product allows us to access over 240,000 convenience, grocery, and drug stores across the U.S. that have stomach aisles offering over-the-counter nausea relief products, as well other channels, including hospitals, cancer centers, airports, and cruise ships, where consumers are looking for natural alternatives. We believe this represents an exciting new opportunity to significantly grow our sales beyond traditional food and supermarkets.”
Reed’s Inc. Expands Product Distribution in Wisconsin and Illinois Markets
February 23rd, 2010 In Newsletter Updates | No Comments– Gaining distribution within Woodman’s Food Market –
Los Angeles, California, Feb. 23, 2010 — Reed’s, Inc. (NASDAQ:REED – News) (“Reed’s” or “the Company”), maker of the top-selling sodas in natural food stores nationwide, announced today that it has expanded its product placement into Woodman’s Food Market, the largest size full-service grocery store chain in Wisconsin and northern Illinois that operates on a warehouse model with 13 locations in the 200,000 to 250,000 square foot range, in contrast to typical grocery stores in the 50,000 to 75,000 square foot range.
Reed’s will sell 14 Reed’s and Virgil branded products into Woodman’s Food Market’s, including its Virgil’s Root Beer, Virgil’s Cream Soda, Virgil’s Black Cherry Cream, Virgil’s Orange Cream, Virgil’s Diet Root Beer, Virgil’s Diet Cream, Virgil’s Diet Black Cherry Cream, Reed’s Extra Ginger, Reed’s Original Ginger, Reed’s Premium Ginger, Reed’s Raspberry Ginger, Reed’s Cherry Ginger, including China Cola & Cherry China Cola. Reed’s expects its products to be available in Woodman’s Food Market’s warehouse locations beginning in March, 2010.
“This is another exciting step towards our build out of Reed’s and Virgil’s into mainstream channels of business. We are extremely pleased to be working with such a high-quality supermarket chain within the industry,” said Neal Cohane, Senior Vice President of Sales and Marketing of Reed’s, Inc. “This continues to reflect the increasing demand among consumers for our natural soda and beverage products when given a choice.”
Check Out Reed’s Recent National TV Coverage on NBC!
February 22nd, 2010 In Newsletter Updates | No CommentsReed’s Ginger Brew was recently featured on the NBC Today show in a special Valentine’s day theme to make an aphrorosiac cocktail. You can view the show here.
Reed’s, Inc. Stock #1 Gainer on NASDAQ Today!
February 18th, 2010 In Newsletter Updates | No CommentsReed’s, Inc. stock was the number one percentage gainer on the NASDAQ today, as reported by CNN Money
The Company’s stock was up approximately 35% on volume of 167,843 shares in Tuesday’s regular session trading.
Reed’s, Inc. January Revenues up Over 30%
February 5th, 2010 In Newsletter Updates | No CommentsCompany’s Premium Sodas Continue to Receive Strong Acceptance in Mainstream Grocery Chains, With New Products and Distribution Channels Contributing to Performance
LOS ANGELES, CA–(Marketwire – February 4, 2010) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it experienced brisk sales in January, due mostly to base business expansion, with new products contributing to the performance.
“We are off to a great start with our January revenues up over 30% from last year’s month one,” stated Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. “While our established top selling soda sales are recovering from the economic setbacks of 2009, we are also landing important private label contracts, which are keeping our brewery very busy. Our recently acquired Sonoma Sparklers brand is contributing, especially as a holiday and celebration drink line. Our private label initiative will have a solid impact on our performance in 2010.”
“We will be introducing a whole new product very soon,” added Mr. Reed. “The announcement of our new over-the-counter anti-nausea Reed’sRx line is expected to be a welcomed product line with customers and national retailers.”
“This is really an exciting time for our Company, as we are beginning to realize many of the goals we had when we started in this business over 20 years ago,” continued Mr. Reed.
“While our competitors find themselves stumbling, and the mega-multinationals slowly come around to adopting ingredients like Stevia, which we have used in our diet sodas for years, Reed’s continues to innovate and dominate in our space. I’m extremely proud of our team, and thankful to our loyal customers and shareholders, who share the love of our products and the vision of our Company,” concluded Mr. Reed.
Reed’s, Inc. Expands Relationship With Kroger
February 2nd, 2010 In Newsletter Updates | No CommentsVirgil’s Diet Root Beer, Diet Cream Soda and Orange Cream Soda to Be Added in 795 Stores
LOS ANGELES, CA–(Marketwire – February 2, 2010) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has expanded its relationship with The Kroger Co. (NYSE: KR), the nation’s largest food retailer, based in Cincinnati, Ohio.
Kroger has authorized Virgil’s Diet Root Beer, Virgil’s Diet Cream Soda and Virgil’s Orange Cream Soda. Product is expected to be in stores beginning in February. By May, Reed’s expects the new SKU’s to be rolled out into approximately 795 Kroger stores nationwide.
“In the past 6 months we have obtained 3 new soda SKU’s and 2 new candy SKU’s within The Kroger Co. stores,” commented Neal Cohane, Senior VP of Sales for Reed’s, Inc. “Virgil’s diet products being authorized in the largest supermarket chain in the US is a major milestone for the brand. Mainstream grocery is getting behind these products; and, they understand that consumers are hungry for alternatives to the traditional, artificially-sweetened sodas offered by the beverage giants.”
Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc., stated, “Our sales team is doing a phenomenal job within mainstream. In 2009 our case sales to Kroger increased by 71% versus 2008, and our sales dollar volume increased by 48%. These are fantastic results, realized in what anyone would consider a very challenging time for retail.”
IC Places Says — “Invest in What You Love…”
January 26th, 2010 In Newsletter Updates | No CommentsReed’s, Inc. Focus of New Article for the Cultural and Lifestyle Portal
Company’s Products Were Also Featured on the Sunday Online TV Show, The Home Entertainment Review Syndicated Through TV and on www.icPlaces.com With Over 10 Million Viewers
LOS ANGELES, CA–(Marketwire – January 26, 2010) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, is the subject of a new IC Places (OTCBB: ICPA) article entitled, “Invest in What You Love, Son.” The article is available online at:http://www.icplaces.com/include/icstory.asp?cat=Business&storyuid=samblis12333&citysite= orlando
In the article, author Steven Samblis said, “My father taught me many things, but one thing in particular stands out as possibly the most important philosophy of his investment strategy, ‘Invest in what you love, Son.’ I only buy shares in companies that have a product I would buy. Better yet, I only buy shares in companies that have products or services that I would, as a salesperson, be proud to represent. After all, when you buy shares in a company you become one of the owners of that company. That’s step one.”
Reed’s also received coverage on Samblis’ weekly syndicated Internet show, “The Home Entertainment Review”, which airs on 350 IC Places city websites nationally www.icplaces.com, on Mevio at www.dvdreview.mevio.com and on TV through a syndication with i2.tv. The show has 10 million viewers over all the networks it appears on.
“I think the article brings up a great point, one which Peter Lynch, the famous Fidelity mutual fund manager made popular in one of his books. Buy what you know and understand,” stated Mr. Chris Reed, Founder and CEO of Reed’s, Inc. “This goes for the products you put in your body first and foremost. I began making Reed’s Ginger Brew in my kitchen, over twenty years ago. I followed my passion and have been able to bring the best all natural sodas to the market. We’re really excited that IC Places put this article together and also featured our products on its weekly TV show.”
Mr. Reed added, “Our success has been based on the consumer loving our products, for a variety of reasons. Our use of ginger is one of the key differentiators from all the other so called ‘herbal’ and functional sodas available. Ginger has been studied extensively, and is one of the only functional ingredients that can legitimately claim health benefits.”
About IC Places
IC Places owns and operates 350 U.S. city websites offering virtual keyhole views of the social, business, and cultural life in each city. Conversation in each city is fueled by a mixture of National, Regional and Local Journalists, including: Chris Knipp, John Stossel, Chuck Norris, Pat Buchanan and Margo Howard — Niece of beloved advice columnist Dear Abby. The company is publicly traded on the OTCBB Symbol ICPA.
Reed’s, Inc. Engages INDIGO Marketing to Market Reed’s Brands in Western Canada
January 14th, 2010 In Newsletter Updates | No CommentsLOS ANGELES, CA–(Marketwire – January 12, 2010) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores across the United States, announced a strategic new partnership with Vancouver, Canada-based INDIGO Marketing, Inc. Food Brokers (Western Canada’s Pre-eminent Natural Products Broker). This partnership is set to begin on January 18th, 2010 and will help increase Reed’s presence across Western Canada.
INDIGO Marketing represents many of the most recognizable and successful natural brands in North America throughout Western Canada. Reed’s partnership with INDIGO will help the Reed’s, Virgil’s, China Cola and Sonoma Sparkler brands gain a stronger foothold in some of the largest western Canadian grocery retailers, including Safeway, Federated Coop, Real Canadian Food Superstores, Sobey’s, and more.
Christopher Reed, Founder Chairman and CEO of Reed’s, Inc., stated, “We are pleased to be working with INDIGO Marketing. They are the premier natural food brokerage firm in Western Canada and a clear leader in the natural food industry. While we do have existing customers in Western Canada we are hoping INDIGO will add some serious horsepower to our sales and marketing in this area.”
Mr. Reed added, “Many top US natural food brands have become major players in Canada. The Canadian consumer is sophisticated, wants natural and organic alternatives, and overall, Western Canada has weathered the economic slowdown better than other parts of North America. The potential for the Reed’s, Virgil’s and our other product lines throughout this region is strong and even stronger now that we are working with the team at INDIGO.”
INDIGO owners Gail Mountain, Debbie Hollett and Gordon Truscott, stated, “This is an extremely exciting opportunity for our company to represent the Reed’s, Inc. brands in western Canada. We recognize that the Reed’s brands are clear leaders within the natural soft drink category and have watched their successes throughout the years. We are fortunate to be able to develop a strategic alliance with the Reed’s team.”
Reed’s, Inc. Announces Record Fourth Quarter Revenues
January 14th, 2010 In Newsletter Updates | No CommentsRevenue Increased Approximately 21% in Comparison to Q4 2008
LOS ANGELES, CA–(Marketwire – January 14, 2010) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that the Company experienced record revenue growth in the fourth quarter ending December 31, 2009, seeing sales rise approximately 21% over the same quarter in 2008. Detailed financial results will be available with the reporting of the audited financials in the company’s 10K expected to be filed with the SEC in March.
“We are thrilled with our fourth quarter revenue growth,” stated Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc., “2009 proved to be a difficult year for beverage companies due to the global recession. Some of the largest beverage companies reported sales decreases in the range of 8% to 10% and many premium brands were down closer to 30%. In light of this, Reed’s held up very well, reporting first through third quarter sales down between 4%-8% per quarter, well above the industry average.”
Mr. Reed added, “The hard work is paying off. The strong performance of our brands; along with contribution from our Sonoma Sparkler acquisition and our newly launched private label business are helping to propel the business back into a growth mode. Our business will continue to benefit by a recovering economy and our new product lines. The private label business is opening new sales channels with some of the largest retailers in the country. These new relationships are benefiting our branded business as well. We have great momentum going into 2010 and expect that both our branded and private label business, along with new product offerings to be announced, will result in amazing growth of profitable business during the next few years.”
Passionate about Ginger
January 12th, 2010 In Chris Reed, Founder and CEO | No CommentsReed’s gets calls and emails every week for different uses people have for our drinks. Radio host Gary Meier of Chicago mega station WGN uses our chews as a digestive stomach settling agent. We hear from customers that use our drinks for migraines and that this is the only thing that allieviates the pain. The theory is ginger is anti-inflamatory and migraines are caused by inflamation. What excites me about 2010 is this is the year we will start getting our products out into distribution packaged for the drug channel. Its been fun disguising my ginger tonic as a soda for 20 years secretly knowing that the product is helping people. Now we can come out of the closet for the customers who can benefit from ginger’s natural healing properties. We will again present at the Amercian Society of Clinical Oncologists but this year we will have our newly packaged ginger beverage for the drug trade. We have been supplying a few oncology clinics with our drinks with great feedback from patients. This year will see an expansion of that part of our business. Its one thing to quench a persons thirst, its quite another to alievate their pain or nausea while fighting a life threatening disease. This is truly becoming a fulfillment of my personal goals for my products.
You can listen to the interview that I had with Gary Meier from WGN Chicago here.
Reed’s, Inc. Announces Successful Close of Rights Offering Raising $1.2 Million From a Broad Base of Subscribers
December 29th, 2009 In Newsletter Updates | No CommentsRemainder of Series B Convertible Preferred Stock to Be Offered Through Source Capital Group, Inc.
LOS ANGELES, CA–(Marketwire – December 29, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that the Corporation has completed its previously announced rights offering of Series B Convertible Preferred Stock pursuant to its basic and applicable oversubscription privileges. At closing, the Company sold 120,820 shares of Reed’s Series B Convertible Preferred Stock through the exercise of rights at a subscription price of $10 per share, for an aggregate purchase price of $1,208,200. The net proceeds of the Rights Offering are to be used for general working capital. Additional investment in Reed’s Series B Convertible Preferred Stock will be available through Source Capital Group, Inc. (“Source”) for the next 30 trading days.
The offering, as filed with the Securities and Exchange Commission, was for Reed’s to raise up to $2,250,000. During the subscription period the company raised $1,208,200 and issued 120,820 shares of Series B Convertible Preferred Stock. This leaves an additional $1,041,800 or 104,180 shares of Series B Convertible Preferred Stock available to be sold through Source under a standby arrangement. These shares will be available for purchase through Source until the sooner of (i) Feb. 5, 2010 or (ii) the date the Offering has been fully subscribed. Investors interested in participating in this offering may contact the Investment Banking Department at Source Capital Group, Inc. at 203-341-3500 (extension 224).
“We are pleased that Reed’s has been able to strengthen its equity capital base through the support of our shareholders and the investors who subscribed for shares through the rights offering,” stated Jim Linesch, Reed’s CFO. “The Company intends to apply to the OTC Bulletin Board for quotation of the Series B Convertible Preferred Stock to facilitate the trading of the shares by our existing investors.” He added, “Additionally it will open up the preferred shares for broader ownership. Money managers and other institutional investors, with restrictions that limit their investment to only publicly listed and traded instruments, will now be able to buy and own these preferred shares.” The Company cannot assure that the Series B Preferred will meet the requirements for quotation or that there will be an active trading market for our Series B Preferred.
Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc., stated that “rights offerings are not that common in the US, though they are more standard in Europe. They fit our corporate culture since they empower and reward the shareholders who have supported us so far. Many of our shareholders are loyal customers who have responded to our direct marketing pieces on our products such as the neck tags we hung on our bottles for our IPO. We sell our products in a more grassroot way so why not our shares?” He added, “For too long we have seen Wall Street insiders and institutions as the primary beneficiaries of participation in IPOs and Private Placements. We at Reed’s have always felt that it is only fair to give existing shareholders a shot at these deals.” He ended stating that, “Reed’s is now well positioned to deliver solid growth and performance. We have the top-selling sodas in natural food stores nationwide, years of experience under our belt and a strong plan in place for 2010 under which we are already experiencing solid growth.”
Reed’s, Inc. Engages Marsham International to Represent Brands in Eastern Canada
December 22nd, 2009 In Newsletter Updates | No CommentsOS ANGELES, CA–(Marketwire – December 22, 2009) – Reed’s, Inc. (NASDAQ: REED) (NASDAQ: REEDR), maker of the top-selling sodas in natural food stores across the United States, announced its partnering up with Marsham International Food Brokers, Inc. out of Richmond Hill, Ontario, Canada. Marsham International represents many of the major natural food companies in eastern Canada. This partnership with Marsham will help the Reed’s, Virgil’s, China Cola and Sonoma Sparkler brands gain a strategic foothold in some of the largest Canadian grocery retailers including Loblaws and Sobeys.
Christopher Reed, Founder Chairman and CEO of Reed’s, Inc., stated, “We are thrilled to be working with Marsham International.” He added, “They are the premier natural food brokerage firm in eastern Canada. The natural food industry in Canada is very active. Many top US natural food brands are major players in Canada. We have a significant opportunity in Canada.” Paul Marsham, CEO and Founder of Marsham International, stated, “We are excited to be representing Reed’s, Inc. brands in eastern Canada. I have followed these brands for years and have seen them grow into a real natural beverage powerhouse. I am sure we can add considerable value to these brands through our natural food network.”
REED’S, Inc. to Make 4 Pack Cans for Pharmacies
December 20th, 2009 In Newsletter Updates | No CommentsClick here to download the latest article from LA Business Journal that chronicles Reed’s plan to produce newly pakaged anti -nausea products for pharmacies. (PDF)
Chinese Buying all the Ginger up for Swine Flu
December 19th, 2009 In Chris Reed, Founder and CEO | 3 CommentsChinese marketplaces are causing us grief because the billion plus populace is using ginger and honey brews to prevent swine flu. This has taken the ginger farmers by surprise and making us think about buying a ginger farm in Hawaii. Maybe that makes our drinks a preventative for swine flu. I hope so. So far so good.
Reed’s, Inc. Continues Global Rollout
December 10th, 2009 In Newsletter Updates | No CommentsCompany Announces New International Distribution Partners in South Africa and Israel
LOS ANGELES, CA–(Marketwire – December 9, 2009) – Reed’s, Inc. (NASDAQ: REED) (NASDAQ: REEDR), maker of the top-selling sodas in natural food stores nationwide, announced today that it has received its first order from the largest independently owned retail distributor of consumer goods, food products, beverages and pharmaceutical lines in all of Southern Africa. The initial order covered all of Reed’s branded products, including Reed’s Ginger Brew, Virgil’s Natural Soda and China Cola. In addition, Reed’s Inc. received its second order from a new Israeli importer which distributes primarily natural products to convenience stores throughout Israel.
“We are encouraged by these orders,” stated Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. “That the South African order was of significant quantity and includes all three of our product lines are just further proof of how much our international sales department has stepped up its efforts. Reed’s and Virgil’s are now available in at least eleven countries and we’re expecting to increase that number in the coming months.”
By distributing products predominantly made in the USA, the South African Importer has become a formidable force in that country’s retail trade sector. In fact, the importer currently distributes high volumes of over 40,000 items to its local markets, and that number is only expected to grow as its offerings become more diverse. Reeds, Inc. is being regarded by many as a key component of that company’s expansion.
Ginger Ale to Compete With Over the Counter Drugs
December 7th, 2009 In Newsletter Updates | No CommentsCompany’s Decision Comes After Years of Hearing From Customers’ Medicinal Uses of Their Reed’s Ginger Brews and Numerous Medical Studies Validating the Health Benefits of Ginger
LOS ANGELES, CA–(Marketwire – December 7, 2009) – Reed’s, Inc. (NASDAQ: REED) (NASDAQ: REEDR), maker of the top-selling sodas in natural food stores nationwide, announced today that it will begin producing new products designed to compete with existing over the counter medicines.
“For years we have been hearing from our customers on how they use our ginger brews to treat health conditions. We’ve spoken to customers using our drinks for motion sickness, food poisoning, migraines, morning sickness, irritable bowel syndrome and even autism,” commented Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc.
“I started this business because I believed in the healing power of ginger. I studied Ayurveda (East Indian herbology) and Chinese medicine, and using the principles of these herbal pharmacopeias, I developed my Reed’s Ginger Brews. Responding to the growing trend toward more natural products, drug stores have started to include natural drug alternatives alongside over-the-counter drugs. In fact, we have been encouraged to develop these products for a certain drug store chain. Therefore, we have created a new line of products based on the Reed’s Ginger brand. The new brand includes variations on some of our most popular ginger products and will have a new trademark, R(x)eed’s where the r and x are joined like in drug store signs of old days.” Mr. Reed added, “Since we started making our Reed’s Ginger Brews, considerable research has come out showing the health benefits of ginger, including its ability to kill bad bacteria in the digestive track, treat post-chemo nausea and combat cancer cells. We look forward to the ongoing, research around ginger and believe ginger should be a regular component of everyone’s diet. We are the only company in the world that brews fresh ginger to make our ginger ales, which is the main reason our drinks have worked so well for our customers.”
Reed’s, Inc. Announces Increase in the Conversion Ratio of Transferable Rights Offering
December 4th, 2009 In Newsletter Updates | No CommentsOffering Extended to Monday, December 21, 2009
LOS ANGELES, CA–(Marketwire – December 3, 2009) – Reed’s, Inc. (NASDAQ: REED) (NASDAQ: REEDR), announced today that the Company has increased the conversion rate of its Series B Convertible Preferred Stock (“Series B Preferred”) to seven (7) shares of common stock per share of Series B Preferred. The conversion price is now $1.43 per share. Investors may purchase Series B Preferred shares for $10.00 per share by exercising four (4) transferable rights (NASDAQ: REEDR).
Each share of Series B Preferred carries a five percent (5%) annual dividend for a term of three (3) years. The dividends are currently worth about $0.14 per common share, as valued by using the net present value formula using the Company’s cost of equity as the discount rate.
There are two reasons why the convertible preferred is worth more than the underlying shares into which they can be converted. First, preferred shares pay dividends while common stock usually doesn’t. As a result, the preferred investor receives all the upside potential of the common stock and more cash while he or she waits. Second, if something goes wrong, the preferred shares are more protected. Since the preferred shares are senior to common, the preferred shareholders receive all their investment back before the common shareholders are paid anything.
Important Dates:
Subscription Period From November 16, 2009 to
December 21, 2009(2)
Last Day Rights May Be Traded December 16, 2009(2)
Expiration Date December 21, 2009(2)
(1) Assumes three day settlement.
(2) Unless the offering is extended.
The Company has distributed to each such holder one transferable right for every share of common stock owned on the record date of November 13, 2009. During the subscription period, the transferable rights are being traded on the NASDAQ Exchange (NASDAQ: REEDR). Each four (4) rights will entitle the holder to purchase one share of Series B Preferred at the subscription price of $10.00 per share. Each share of Series B Preferred carries a five percent (5%) annual dividend for a term of three (3) years, will have an initial stated value of $10.00 per share, and may be convertible into shares of common stock at a conversion ratio of seven (7) shares of common stock for each share of Series B Preferred held at the time of conversion, representing an initial conversion price of $1.43 per share, which is subject to adjustment. Rights holders who fully exercise their rights will be entitled to subscribe, subject to certain limitations and subject to allotment, for additional shares that remain unsubscribed as a result of any unexercised rights in an amount equal to up to 400% of the shares of Series B Preferred for which such subscriber was otherwise entitled to subscribe. Shares of Series B Preferred that remain unsubscribed at the expiration of the rights offering will be reoffered to the public at $10.00 per share. Consummation of the rights offering is subject to customary closing conditions.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The securities may only be offered by means of a prospectus, additional copies of which may be obtained, when available, by contacting the information agent, MacKenzie Partners, Inc., at 105 Madison Avenue, New York, NY 10016, toll-free: (800) 322-2885, collect: (212) 929-5500 or via email at reedrights@mackenziepartners.com.
Mr. Reed Will Join Presenter Manoj Bhargava, CEO of 5-Hour Energy, and Other Beverage CEOs on a Panel Called “Taking on the Big Boys”
December 3rd, 2009 In Newsletter Updates | No CommentsLOS ANGELES, CA–(Marketwire – December 3, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that Founder, Chairman and CEO Mr. Chris Reed will be speaking at the BevNET Live Winter event. Mr. Reed will be part of a panel of innovative beverage CEO’s. The panel will begin at 11:55 a.m. on December 8th, and is entitled “Taking on the Big Boys.”
Held at the Loews Santa Monica Beach Hotel in Santa Monica, CA on December 7th and 8th, BevNET Live Winter 2009 is the latest evolution of BevNET’s popular event format. Expanded into a day and a half format, “Beverage School” and BevNET “Best of 2009″ Awards dinner will be held on Monday, December 7 and the BevNET Live “main event” will be held on December 8th.
BevNET’s website stated, “BevNET Live has added a pair of beverage marketers whose longevity and status prove that a brand doesn’t have to come off a Coke or Pepsi truck to successfully move product.”
Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc., commented, “I’m thrilled to have been asked to speak on the panel. I feel I have a lot to offer new people starting out in the beverage industry, from creative brands, creative financing approaches to keeping a positive mental attitude through thick and thin.”
“We picked Chris for this panel because we think he’s an innovative thinker and an entrepreneur who has repeatedly proven himself able to address the problems of the small operator with nimble, unconventional solutions,” said Jeffrey Klineman, the editor of BevNET. “Chris Reed was at the vanguard of the growth of natural and gourmet sodas. The longevity — and recent growth — of Reed’s over the years is testament to the quality of the product and his willingness to do what it takes to succeed. He’s not afraid to stand in the way of beverage giants and stake out his turf as an independent operator. Chris was one of our first choices to speak to the community of marketers, retailers, distributors and investors coming to BevNET Live — we think he’s got an immense amount of wisdom and experience to share, and we know he’ll do it with good humor and insight.”
Reed’s, Inc. Secures Revolving Credit Facility of $3 Million
December 3rd, 2009 In Newsletter Updates | No CommentsNew Line Increases Working Capital Borrowing Eligibility
LOS ANGELES, CA–(Marketwire – November 23, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that the Company has closed a financing Agreement with GemCap Lending I, LLC (“GemCap”) for a $3 million revolving credit facility, secured primarily by its accounts receivable and inventory. The GemCap facility will replace Reed’s existing credit facility. The new senior revolving facility reflects improved eligibility and reduced reserves on Reed’s collateral base for borrowing.
“This financing transaction is a component of our strategy to provide adequate working capital to fund the business opportunities currently on our plate,” commented Jim Linesch, Chief Financial Officer of Reed’s, Inc. “These funds will support our new fast growing private-label business as well as our branded products. Reed’s sales pipeline has never been stronger, and we are looking forward to solid growth and a record year in 2010. GemCap will be a good partner to help fund our growth plans.”
“Reed’s is a welcome addition to our portfolio companies”, commented David Ellis, Co-President of GemCap Lending I, LLC. “They fit our desired profile of a company that is well positioned, with strong potential for increasing success. We are impressed by the integrity and intensity of the management as they pursue their goals. They also have great products that we know well.”
Reed’s, Inc. Secures Revolving Credit Facility of $3 Million
November 23rd, 2009 In Uncategorized | No CommentsNew Line Increases Working Capital Borrowing Eligibility
LOS ANGELES, CA–(Marketwire – November 23, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that the Company has closed a financing Agreement with GemCap Lending I, LLC (“GemCap”) for a $3 million revolving credit facility, secured primarily by its accounts receivable and inventory. The GemCap facility will replace Reed’s existing credit facility. The new senior revolving facility reflects improved eligibility and reduced reserves on Reed’s collateral base for borrowing.
“This financing transaction is a component of our strategy to provide adequate working capital to fund the business opportunities currently on our plate,” commented Jim Linesch, Chief Financial Officer of Reed’s, Inc. “These funds will support our new fast growing private-label business as well as our branded products. Reed’s sales pipeline has never been stronger, and we are looking forward to solid growth and a record year in 2010. GemCap will be a good partner to help fund our growth plans.”
“Reed’s is a welcome addition to our portfolio companies”, commented David Ellis, Co-President of GemCap Lending I, LLC. “They fit our desired profile of a company that is well positioned, with strong potential for increasing success. We are impressed by the integrity and intensity of the management as they pursue their goals. They also have great products that we know well.”
A New Report from Crystal Equity Research
November 20th, 2009 In Newsletter Updates | No CommentsCrystal Equity Research has issued a new report on Reed’s, Inc. (REED: Nasdaq) with revised outlook following financings and report of 3Q09 results.
This report is available without a subscription. Subscription fees have been prepaid by the issuer, an agent of the issuer or an interested third-party. Please read the important disclosures at the end of all Crystal Reports and Weekly Comments.
Crystal Equity Research is independent research resource on small capitalization stocks.
Reed’s Inc. Announces Record Date for Rights Offering
November 7th, 2009 In Newsletter Updates | No CommentsSource Capital Group, Inc. to Act as Dealer Manager
Proceeds of Financing May Reach $2 Million
LOS ANGELES, CA–(Marketwire – November 5, 2009) – Reed’s Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that the Company has set the close of trading on the NASDAQ Exchange on November 13, 2009 as the record date for its previously announced rights offering of Series B Convertible Preferred Stock.
Under the terms of the rights offering, the Company will distribute at no charge to the holders of its common stock as of the record date transferable rights to purchase up to an aggregate of 225,000 shares of Series B Convertible Preferred Stock (“Series B Preferred”) convertible into 1,125,000 shares of common stock. The last day to buy stock of Reed’s in order to receive the rights is November 10, 2009. In the rights offering, the Company will distribute to each such holder one transferable right for every share of common stock owned on the record date. During the subscription period, the transferable rights shall be traded on the NASDAQ Exchange (NASDAQ: REEDR). Each four (4) rights will entitle the holder to purchase one share of Series B Preferred at the subscription price of $10.00 per share. Each share of Series B Preferred carries a five percent (5%) annual dividend for a term of three (3) years, will have an initial stated value of $10.00 per share, and may be convertible into shares of common stock at a conversion ratio of five (5) shares of common stock for each share of Series B Preferred held at the time of conversion, representing an initial conversion price of $2.00 per share, which is subject to adjustment. Rights holders who fully exercise their rights will be entitled to subscribe, subject to certain limitations and subject to allotment, for additional shares that remain unsubscribed as a result of any unexercised rights in an amount equal to up to 400% of the shares of Series B Preferred for which such subscriber was otherwise entitled to subscribe. Shares of Series B Preferred that remain unsubscribed at the expiration of the rights offering will be reoffered to the public at $10.00 per share. Consummation of the rights offering is subject to customary closing conditions.
The Company anticipates the following important dates for the rights offering. These dates are subject to change, and you should review the prospectus to determine the actual dates related to the rights offering.
Important Dates
Last Day to Buy Stock and Receive Rights November 10, 2009(1)
Shares Trade Ex-Rights November 11, 2009
Record Date November 13, 2009
Subscription Period From November 16, 2009 to
December 14, 2009(2)
Rights Eligible for Trading November 17, 2009
Last Day Rights May Be Traded December 09, 2009(2)
Expiration Date December 14, 2009(2)
(1) Assumes three day settlement.
(2) Unless the offering is extended.
A registration statement related to these securities has been filed with the Securities and Exchange Commission and has become effective. As soon as practicable, the Company expects to mail to holders of common stock as of the close of business on the record date a prospectus for the rights offering accompanied by a subscription rights exercise notice and related information for exercising the rights.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The securities may only be offered by means of a prospectus, additional copies of which may be obtained, when available, by contacting the information agent, MacKenzie Partners, Inc., at 105 Madison Avenue, New York, NY 10016, toll-free: (800) 322-2885, collect: (212) 929-5500.