Business Context and Reporting Period
Company: REED's, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: April 9, 2020
Reporting Period: Event date April 9, 2020; Report signed April 10, 2020.
Key Financial Metrics
This filing does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The report focuses exclusively on stock listing compliance status.
Material Changes
Stock Price Deficiency: The Nasdaq Listing Qualifications Department notified the company that the bid price of its common stock closed at less than $1.00 per share for 30 consecutive business days ending April 9, 2020. This constitutes a failure to comply with Listing Rule 5550(a)(2) (Bid Price Rule).
Outlook, Risks, and Contingencies
- Compliance Period: The company has been granted 180 calendar days, until October 6, 2020, to regain compliance with the Bid Price Rule.
- Compliance Criteria: To regain compliance, the bid price must close at $1.00 per share or more for a minimum of 10 consecutive business days prior to the deadline.
- Delisting Risk: Failure to regain compliance by October 6, 2020, may result in delisting.
- Contingency Plan: If the company fails to meet the bid price requirement but meets other initial listing standards (excluding bid price), it may be eligible for an additional compliance period. This would likely require effecting a reverse stock split.
Investor Verification Checklist
- Verify the current trading price of REED common stock to assess proximity to the $1.00 threshold.
- Monitor company announcements regarding the potential implementation of a reverse stock split.
- Review the company's market value of publicly held shares to determine eligibility for the second compliance period if the bid price is not restored.
- Check for any subsequent 8-K filings regarding the status of the compliance period or delisting proceedings.