REED's, INC. - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by REED's, INC. on November 12, 2015, reporting events occurring on November 9, 2015. The Company is a Delaware corporation headquartered in Los Angeles, California.
Key Financial Metrics and Obligations
The filing details a modification to existing debt obligations rather than reporting period-end financial results.
- Total Debt Principal: $3,000,000 (comprising two Term Loans of $1,500,000 each).
- Lender: PMC Financial Services Group, LLC.
- Interest Rate: Remains unchanged from the terms established in the September 1, 2015 agreement.
- Liquidity Impact: The filing does not provide specific cash flow, revenue, or liquidity figures.
Material Changes
The Company entered into a material definitive agreement to modify the maturity dates of its Term Loan A and Term Loan B.
- Previous Terms: Term Loan A matured December 3, 2016; Term Loan B required monthly principal payments starting November 30, 2015.
- New Terms: Both loans now have a unified maturity date of April 1, 2017.
- Consideration: In exchange for the extended maturity, the Company issued 125,000 warrants for its Common Stock. The exercise price will be set at the lowest closing price on the NYSE between November 9, 2015, and December 31, 2015, capped at $5.05.
Management Commentary and Outlook
Management states that the lengthened maturity dates are intended to provide the Company with time to accumulate cash. This liquidity is planned for future investments, specifically citing the "LA Plant," and to lower borrowing costs. The filing does not contain specific forward-looking guidance on revenue or earnings.
Investor Verification Checklist
- Verify the final exercise price of the 125,000 warrants once the pricing window (Nov 9 - Dec 31, 2015) closes.
- Confirm the specific interest rate applicable to the modified loans as referenced in the September 1, 2015 agreement.
- Review subsequent filings for updates on the "LA Plant" investment and the Company's actual cash accumulation progress.
- Check for any additional covenants or prepayment penalties associated with the loan modification.