GP Investments invests $20M in Zevia

Zevia PBC agreed to sell $20 million of Series A Senior Convertible Preferred Stock to a fund managed by GP Investments. The preferred stock converts into Class A common at 120% of the 10-day VWAP before signing and pays a 6% dividend in kind. GP Investments also gets the right to name a director.

Zevia said proceeds will strengthen its balance sheet and fund product development, marketing, distribution and digital commerce. The beverage maker is pursuing a strategic reset that includes new products, digital demand generation and a hybrid go-to-market strategy.

Piper Sandler advised Zevia, Ropes & Gray was its legal counsel and Skadden represented GP Investments. Zevia CEO Alexandre Ruberti said the investment brings capital and operational expertise; GP Investments CEO Rodrigo Boscolo cited Zevia's clean-label position and growth plan.