$20M GP Investments Preferred Investment Backs Zevia as Q3 Sales Outlook Raised to ~$48M
ZVIA is trading near its 52-week low of $1.11 (9.9% above the low) on light trading volume (0.4× avg).
Summary
Zevia signed a definitive agreement to issue Series A Senior Convertible Preferred Stock to a GP Investments fund for $20 million, a large capital injection for a company of this size. The preferred converts at 120% of the 10-day VWAP before signing, pays a 6% dividend in kind, and gives GP a board seat. The deal follows a 12-month strategic review run with Piper Sandler, and management calls it the best path forward — notable given Kanen Wealth Management's August push for a sale process. Alongside the financing, Zevia pre-announced Q3 2026 net sales of roughly $48 million, above the prior $44-46 million range, and Adjusted EBITDA of negative $0.9 million to negative $1.0 million versus prior guidance of negative $3.0 million to negative $3.5 million. The dilution from conversion and the PIK dividend are the trade-off, but the balance sheet and the guidance raise both move in the right direction. Q3 results are due November 4, 2026, after market close.
At the time of this announcement, ZVIA was trading at $1.22 on NYSE in the Trade & Services sector, with a market capitalization of approximately $94.4M. The 52-week trading range was $1.11 to $2.78. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.