Form 4: Union Square Park Entities Increase Stake in Reed's Inc. Through SAFE Conversion

Union Square Park Capital Management, LLC and related entities report acquiring 531,205 shares of Reed's, Inc. common stock through the conversion of a SAFE investment.

Summary

• Union Square Park Capital Management, LLC, along with related entities, filed a Form 4 disclosing a change in beneficial ownership of Reed's, Inc. [REED] stock on September 24, 2024.
• The transaction involved the acquisition of 531,205 shares of common stock at a price of $1.50 per share on September 10, 2024.
• These shares were acquired through the automatic conversion of a Simple Agreement for Future Equity (SAFE) investment amounting to $796,808.
• Following the reported transaction, the entities beneficially own 1,230,699 shares, which includes 145,828 shares issuable upon exercise of a warrant dated May 25, 2023.
• The reporting persons include Union Square Park Capital Management, LLC, Union Square Park GP, LLC, Union Square Park Partners, LP, and Leon M. Zaltzman.
• The filing indicates that these entities may have been deemed to beneficially own more than 10% of the Common Stock as of May 31, 2023.
• The reporting persons disclaim beneficial ownership of the securities except to the extent of their pecuniary interest.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The transaction reflects continued investment by Union Square Park Capital Management, but it's a standard filing related to a pre-existing agreement.

Positives

• The conversion of the SAFE investment into equity demonstrates continued support from Union Square Park Capital Management and related entities for Reed's, Inc.

Industry Context

Form 4 filings are standard disclosures required by the SEC when significant changes in ownership occur, providing transparency to the market.

Stakeholder Impact

• The increased stake by Union Square Park Capital Management could be viewed positively by shareholders, signaling confidence in the company's prospects.

Key Dates