Reed’s private placement is expected to raise approximately $10 million before expenses through a share sale to its majority investor, D&D Source of Life Holding Ltd. The beverage company announced the agreement on October 28, 2026; the transaction has not yet closed.

Reed’s private placement terms

Under the securities purchase agreement, D&D will buy 17,421,602 common shares at $0.574 per share. Reed’s said the private investment in public equity was priced in accordance with the NYSE minimum pricing rule.

The company intends to use the net proceeds for working capital and other general corporate purposes. The approximately $10 million figure is gross proceeds, before estimated offering expenses.

Registration and resale

Reed’s said the securities are being offered in reliance on Section 4(a)(2) of the Securities Act and/or Regulation D. The SEC explains that the Section 4(a)(2) private-placement exemption applies to issuer transactions that do not involve a public offering.

The shares will not initially be registered and cannot be offered or sold in the United States without an effective registration statement or an applicable exemption. Under a registration rights agreement, Reed’s has agreed to file a registration statement with the SEC covering resale of the shares.

Next milestone

Closing is expected on or about October 30, 2026, subject to customary closing conditions.

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