Reed's loses fizz after pricing stock offering

Reed'S

20/11/2020 14:29

(Updates with pricing details)
    ** Reed’s Inc  REED.O  down >20% premarket after carbonated
beverages maker prices follow-on
    ** Co sells 18.75 mln shares, raises $10.5 mln  urn:newsml:reuters.com:*:nGNX23nvHZ
    ** Offering prices at 56 cents vs stock's last close of 76
cents
    ** REED to use net proceeds to repay ~$4.6 mln under credit
facility and repay ~$.25 mln of convertible debt, remaining for
general corp purposes
    ** Co late Thurs also provided fiscal 2021 net sales
guidance of $45.8-$46.6 mln vs Street consensus of $43.95 mln,
per Refinitiv IBES data  urn:newsml:reuters.com:*:nGNX6g8D1t
    ** REED has ~63 mln shares outstanding and ~55.4 mln shares
of free float, per Refinitiv data
    ** Stock has fallen 16.5% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com))