Why Reed's Stock Is Plunging Today

After spiking higher Tuesday, Reed's, Inc. (NASDAQ: REED) shares are trading lower after the company announced a common stock offering of 6.68 million shares at $1.18 per share. The expected proceeds is $7.9 million.

Reed's, Inc. develops, manufactures, and sells natural hand-crafted beverages in the craft specialty foods industry in the United States, Canada, Asia, Europe, Australia, and South America.

Reed's shares were trading 22.2% lower at $1.12 per share on Wednesday at the time of publication. The stock has a 52-week high of $1.68 and a 52-week low of $0.56.