Reed's, Inc. Receives NYSE Notice of Non‑Compliance; Plan Accepted
$REED · REED'S, INC.Research Summary
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Reed's, Inc. Receives NYSE Notice of Non‑Compliance; Plan Accepted
What Happened
Reed's, Inc. (ticker: REED) announced that NYSE American notified the company it is not in compliance with Section 1003(a)(i) of the NYSE American Company Guide (stockholders' equity requirement) because the company has reported losses in two of its three most recent fiscal years. Reed's submitted a compliance Plan to NYSE American on June 26, 2026, and NYSE American accepted that Plan on August 12, 2026. The company will be subject to periodic reviews, including quarterly monitoring, and must regain compliance by November 29, 2027, or face possible delisting proceedings.
Key Details
- NYSE rule cited: Section 1003(a)(i) requires at least $2.0 million in stockholders’ equity if losses occurred in 2 of 3 most recent fiscal years.
- Plan timeline: Plan submitted June 26, 2026; accepted by NYSE American August 12, 2026; compliance deadline November 29, 2027.
- Trading status: Common stock continues to trade on NYSE American under symbol “REED” with an added “.BC” designation to indicate “below compliance.”
- Other notes: NYSE found the company not currently eligible for exemptions (e.g., >$50M market cap exemption). The company may appeal any staff delisting determination per NYSE rules. A press release was issued August 14, 2026.
Why It Matters
This filing informs investors that Reed's is currently out of compliance with a listing-standard equity requirement and is operating under an NYSE-accepted remediation plan. While there is no immediate delisting and shares continue to trade, the “.BC” designation signals elevated listing risk until the company meets the requirements or otherwise resolves the matter by the November 29, 2027 deadline. Investors should watch for quarterly updates on the company’s progress toward compliance and review Reed's public filings for related financial details and risks.