Reed’s announces limited waiver, amendment with secured note holder

Reed’s has entered into a Limited Waiver, Deferral and Amendment and Restatement Agreement with its senior secured convertible note holders and closed on a $3.8 million SAFE with certain stockholders and affiliates. The SAFE proceeds are intended by Reed‘s to serve as a backstop to a planned public offering by Reed’s of subscription rights to its existing stockholders of record for aggregate gross proceeds of up to $6 million. The SAFE converts into the next equity financing of Reed’s on the same terms and conditions as other subscribers. Subscription rights of each SAFE investor will be considered exercised to the extent the SAFE proceeds cover the aggregate exercise price of such rights. Subject to satisfaction of terms and conditions set forth in the Amendment, the holders of the Company’s 10 % Secured Convertible Notes have agreed to waive certain defaults under the notes, rescind their right to receive certain amortization payments through March 31, 2024, amend and restate certain provisions of the notes, and permit the Company to satisfy a portion of the outstanding accrued fees under the notes through payment of $132,430 in cash and the issuance of common stock at a value per share equal to the lesser of $1.50 or the per share price of securities issued in the rights offering. The remaining balance of any outstanding accrued fees under the notes will be satisfied by increasing the principal amount of the amended and restated Notes.