Financing ·
Reed's amends loan agreement to require $2.5M equity raise by Nov 20 or face default
REEDReed's, Inc.
Reed's, Inc. entered into the third amendment to its Senior Secured Loan and Security Agreement with Whitebox Advisors-affiliated funds. The amendment revises the minimum liquidity covenant to a threshold of $11 million in cash, inventory, and accounts receivable. Crucially, it replaces an existing equity contribution default with a new Event of Default if the company fails to receive at least $2,500,000 in cash equity contributions by November 20, 2026. The company must also pay a non-refundable extension fee of $25,000 by that date. Reed's expects its ongoing private placement to close by the deadline and has already received $7,500,000 in gross proceeds. The company manufactures and sells natural beverages.