Zevia PBC has entered into a securities purchase agreement with Bubble Holdings, LLC, an affiliate of GP Investments, Ltd., for a strategic investment of up to $20.0 million. The investment is structured through the sale of Series A Senior Convertible Preferred Stock and is divided into two tranches, with an initial $15.0 million investment having closed on October 22, 2026.
Key Details
- Investment Structure: The investment consists of an initial $15.0 million closing, with a second $5.0 million tranche contingent upon Zevia achieving specific financial targets for the fiscal year ending December 31, 2026.
- Terms of Preferred Stock: The Series A Preferred Stock is convertible into Class A Common Stock at an initial price of $1.448 per share and carries a 6.00% cumulative annual dividend. The investor also gains the right to designate one director to Zevia's board.
- Conditions for Second Tranche: The additional $5.0 million investment is subject to Zevia reporting fiscal year 2026 net sales of at least $172.5 million and an Adjusted EBITDA of no less than negative $3.0 million.