Union Square Park Entities Purchase $796K in Reed’s Inc Shares

In a recent development, entities affiliated with Union Square Park, including Union Square Park Capital Management, LLC, Union Square Park GP, LLC, Union Square Park Partners, LP, and individual Leon M. Zaltzman, have collectively acquired shares in Reed’s, Inc., a notable company in the beverage sector. This acquisition, completed on September 10, 2024, involved purchasing 531,205 shares at a price of $1.50 each, resulting in a total investment of approximately $796,807.

The shares acquired are directly held by Union Square Park Partners, LP, with Union Square Park Capital Management, LLC overseeing the investment. Union Square Park GP, LLC acts as the general partner in this arrangement, while Leon M. Zaltzman, who is the managing member of both the investment manager and the general partner, is involved in this transaction. It should be noted that this reported ownership includes an additional 145,828 shares that may be issued upon exercising a warrant from May 25, 2023.

The transaction was facilitated through the automatic conversion of a Simple Agreement for Future Equity (SAFE), which had previously been valued at $796,808. The parties involved have documented the transaction under multiple Central Index Key (CIK) numbers, indicating their shared responsibility for reporting.

It’s important to clarify that the filing of this transaction does not imply that the reporting entities are beneficial owners of the reported securities under Section 16 of the Securities Act of 1934. Each entity has stated that they do not have beneficial ownership of the reported securities, except to the extent of their financial interest.

Investors and market observers closely monitor such transactions, as they can reflect confidence in the company’s future prospects. Reed’s, Inc., recognized for its range of bottled and canned soft drinks and carbonated waters, is experiencing increased investment interest from key stakeholders, which may attract attention from those tracking the company’s stock performance.

In other updates, Reed’s, Inc. reported robust financial results for the second quarter of 2024, showcasing significant sales and margin growth. The beverage company’s net sales rose sharply, driven by a remarkable 70% year-over-year increase in ginger beer sales and a 26% rise in sales of Virgil’s products. The gross margin expanded by 720 basis points, and operating expenses as a percentage of sales decreased by 460 basis points.

Reed’s also recorded a positive modified EBITDA and successfully lowered its delivery and handling costs by 16%. Although the company posted an operating loss of $0.7 million, it maintains a solid inventory position and is gearing up to launch a new line of better-for-you beverages by early 2025.

These recent advancements reinforce Reed’s financial objectives for the year, with the company optimistic about achieving its targets for 2024, including growth in net sales, expansion of gross margin, and positive cash flow from operations. However, it is important for investors to be aware that the company’s total debt amounted to $27.4 million as of June 30, 2024.

As Union Square Park entities increase their stake in Reed’s, investors may find the company’s latest financial metrics noteworthy. Reed’s, Inc. currently has a market capitalization of $10.93 million. The company’s revenue for the last twelve months, as of Q2 2024, is $45.02 million, with a gross profit margin of 34.7%, indicating its ability to retain a substantial portion of sales as profit. Despite a 6.79% decline in revenue over the same period, Reed’s reported an 18.68% growth in quarterly revenue for Q2 2024, hinting at a possible recovery or seasonal variation in sales.

Investing insights suggest that the company’s negative price-to-earnings (P/E) ratio of -0.43, adjusted to -1.14 for the last year up to Q2 2024, implies that investors do not currently anticipate earnings growth in line with share prices. Furthermore, the company’s negative PEG ratio of -0.02 and Price/Book ratio of -0.46 highlight market skepticism regarding future growth prospects. These insights may prompt investors to evaluate recent investment actions in relation to the company’s performance metrics.

For those seeking deeper insights into Reed’s, Inc. and similar investment opportunities, there are additional tips available that could provide valuable guidance for informed investment decisions.

This article was generated with the support of AI and reviewed by an editor.