Zevia PBC has entered into a significant investment agreement with Bubble Holdings, LLC, which could reshape its financial landscape. On October 22, 2026, the company agreed to sell an aggregate of 20,000 shares of a new series of preferred stock, designated as Series A Senior Convertible Preferred Stock, for a total of $20 million. This investment is expected to fund key strategic priorities and general corporate purposes.

The transaction is structured to be completed in two phases. Initially, Zevia sold 15,000 shares for $15 million, with the remaining 5,000 shares to be sold at a later date, contingent on certain financial performance metrics. This move is crucial as it highlights Zevia's efforts to strengthen its capital base and align with its growth strategies in the competitive bottled and canned soft drinks market.

Background

Zevia PBC, classified under the SIC code 2086, operates in the bottled and canned soft drinks and carbonated waters sector. The company is publicly traded on the New York Stock Exchange under the ticker symbol ZVIA. Recent filings include an 8-K dated October 23, 2026, detailing this investment agreement, as well as a 10-Q filed on August 5, 2026.

What the Filing Says

The SEC filing states, "On October 22, 2026, Zevia PBC entered into a Securities Purchase Agreement with Bubble Holdings, LLC. Pursuant to the Purchase Agreement, the Company agreed to issue and sell to the Purchaser... an aggregate of 20,000 shares of a new series of preferred stock... for a purchase price of $1,000 per share and an aggregate purchase price of up to $20.0 million." This agreement is designed to be exempt from the registration requirements of the Securities Act of 1933.

Impact

This investment could significantly impact Zevia's operational capabilities and financial health. The agreement allows for the potential infusion of $20 million, which will be directed towards strategic initiatives. The conditions tied to the deferred closing, including minimum sales and EBITDA targets, ensure that the investment aligns with the company's performance metrics.

What's Next

The next steps involve the anticipated filing of the 2026 Annual Report, which will provide the necessary financial disclosures to facilitate the deferred closing of the remaining shares. The filing does not specify any further actions beyond this report.