Business Context and Reporting Period
Company: REED's, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: December 12, 2006
Event: Completion of Initial Public Offering (IPO)
Key Financial Metrics
| Metric | Value |
|---|---|
| Shares Sold in IPO | 2,000,000 |
| Offering Price per Share | $4.00 |
| Gross Proceeds | $8,000,000 |
| Underwriting Costs | $800,000 |
| Net Proceeds (excluding other expenses) | $7,200,000 |
| Shares Outstanding (post-offering) | 7,143,185 |
Material Changes and Transaction Details
- Offering Completion: The Company completed the sale of the remaining 1,666,844 shares of its 2,000,000 share IPO on December 12, 2006, following a post-effective amendment to the Registration Statement on October 11, 2006.
- Prior Issuances: Between August 3, 2005, and April 7, 2006, the Company had already issued 333,156 shares under the same Registration Statement.
- Underwriter Warrants: The Company agreed to issue warrants to underwriters to purchase up to 200,000 additional shares at an exercise price of $6.60 per share (165% of the offering price). The warrants are exercisable for five years and were purchased by underwriters at $0.001 per warrant.
Guidance, Outlook, and Risks
The filing text does not provide specific forward-looking guidance, management commentary on future operations, or a detailed discussion of risks and contingencies beyond the transaction details of the IPO completion.
Investor Verification Checklist
- Verify the total "other expenses of the public offering" not included in the $7,200,000 net proceeds figure.
- Confirm the final share count and any subsequent dilution from the 200,000 underwriter warrants.
- Review the full Registration Statement (File No. 333-120451) for detailed use of proceeds and risk factors.
- Check for any lock-up agreements or restrictions on the sale of shares by existing shareholders.