REED
Reed's, Inc.
stock NYSEAMERICAN

Is it possible they lower the strike price as well?
My quick google search: Yes, the strike price (or exercise price) of a warrant can be and frequently is lowered. This typically happens through two primary mechanisms: automatic anti-dilution provisions (such as down-round price protection) or discretionary corporate amendments used to incentivize investors. [1] (https://hselaw.com/news-and-information/legalcurrents/hse-view-warrant-inducement-offerings/), [2] (https://www.americanbar.org/groups/business_law/resources/business-law-today/2021-october/sweetening-the-deal/), [3] (https://knowledge.dilutiontracker.com/en/articles/6814855-what-is-price-protection-on-warrants-and-how-does-it-affect-stock-prices), [4] (https://www.sciencedirect.com/science/article/pii/S0304405X01000617)
Real-World Examples
**1. Smart For Life, Inc. (SMFL) — Down-Round Protection**
What happened: In December 2022, Smart For Life (SMFL) had outstanding warrants with an exercise price of $6.25. Because the company's stock price plummeted, they were forced to raise new capital by issuing new shares at a much lower price ($0.35 per share). [1] (https://knowledge.dilutiontracker.com/en/articles/6814855-what-is-price-protection-on-warrants-and-how-does-it-affect-stock-prices)The adjustment: The original warrants contained a "Full Ratchet" anti-dilution clause. This mandatory contractual feature automatically reduced the strike price of the old warrants from $6.25 to $0.35 to match the new offering price, preventing the original warrant holders from being unfairly diluted. [1] (https://knowledge.dilutiontracker.com/en/articles/6814855-what-is-price-protection-on-warrants-and-how-does-it-affect-stock-prices)
**
2. Reed's, Inc. (REED) — Discretionary Warrant Inducement**
What happened: In July 2017, Reed's, Inc. entered into a Warrant Exercise Agreement with a major holder. The holder possessed a warrant to purchase over 1.4 million shares of common stock. [1] (https://www.sec.gov/Archives/edgar/data/1140215/000149315217007818/ex10-1.htm)The adjustment: To entice the investor to immediately exercise their warrants and provide the company with quick cash, Reed's voluntarily lowered the exercise price to $1.50 per share. This is known as a warrant inducement offering. [1] (https://www.sec.gov/Archives/edgar/data/1140215/000149315217007818/ex10-1.htm), [2] (https://hselaw.com/news-and-information/legalcurrents/hse-view-warrant-inducement-offerings/)
**3. Barringer Resources Inc. — Temporary Window Reduction**
What happened: In a classic historical example of a "warrant repricing window," Barringer Resources announced that it reduced the exercise price on its Class B warrants to $2.25 from $4.03. [1] (https://www.sciencedirect.com/science/article/pii/S0304405X01000617)The adjustment: The price reduction was only made effective for a 30-day window to encourage immediate exercise. After the 30 days expired, the strike price reverted back to its original $4.03. [1] (https://www.sciencedirect.com/science/article/pii/S0304405X01000617)
Too smooth brain to understand if any of these make sense.

Is it possible they lower the strike price as well?
My quick google search: Yes, the strike price (or exercise price) of a warrant can be and frequently is lowered. This typically happens through two primary mechanisms: automatic anti-dilution provisions (such as down-round price protection) or discretionary corporate amendments used to incentivize investors. [1] (https://hselaw.com/news-and-information/legalcurrents/hse-view-warrant-inducement-offerings/), [2] (https://www.americanbar.org/groups/business_law/resources/business-law-today/2021-october/sweetening-the-deal/), [3] (https://knowledge.dilutiontracker.com/en/articles/6814855-what-is-price-protection-on-warrants-and-how-does-it-affect-stock-prices), [4] (https://www.sciencedirect.com/science/article/pii/S0304405X01000617)
Real-World Examples
**1. Smart For Life, Inc. (SMFL) — Down-Round Protection**
What happened: In December 2022, Smart For Life (SMFL) had outstanding warrants with an exercise price of $6.25. Because the company's stock price plummeted, they were forced to raise new capital by issuing new shares at a much lower price ($0.35 per share). [1] (https://knowledge.dilutiontracker.com/en/articles/6814855-what-is-price-protection-on-warrants-and-how-does-it-affect-stock-prices)The adjustment: The original warrants contained a "Full Ratchet" anti-dilution clause. This mandatory contractual feature automatically reduced the strike price of the old warrants from $6.25 to $0.35 to match the new offering price, preventing the original warrant holders from being unfairly diluted. [1] (https://knowledge.dilutiontracker.com/en/articles/6814855-what-is-price-protection-on-warrants-and-how-does-it-affect-stock-prices)
**
2. Reed's, Inc. (REED) — Discretionary Warrant Inducement**
What happened: In July 2017, Reed's, Inc. entered into a Warrant Exercise Agreement with a major holder. The holder possessed a warrant to purchase over 1.4 million shares of common stock. [1] (https://www.sec.gov/Archives/edgar/data/1140215/000149315217007818/ex10-1.htm)The adjustment: To entice the investor to immediately exercise their warrants and provide the company with quick cash, Reed's voluntarily lowered the exercise price to $1.50 per share. This is known as a warrant inducement offering. [1] (https://www.sec.gov/Archives/edgar/data/1140215/000149315217007818/ex10-1.htm), [2] (https://hselaw.com/news-and-information/legalcurrents/hse-view-warrant-inducement-offerings/)
**3. Barringer Resources Inc. — Temporary Window Reduction**
What happened: In a classic historical example of a "warrant repricing window," Barringer Resources announced that it reduced the exercise price on its Class B warrants to $2.25 from $4.03. [1] (https://www.sciencedirect.com/science/article/pii/S0304405X01000617)The adjustment: The price reduction was only made effective for a 30-day window to encourage immediate exercise. After the 30 days expired, the strike price reverted back to its original $4.03. [1] (https://www.sciencedirect.com/science/article/pii/S0304405X01000617)
Too smooth brain to understand if any of these make sense.