Reed’s Inc., the Los Angeles-based manufacturer of natural soda drinks, announced a retrofit of its manufacturing facility and that it plans to issue new stock.

Reed's expects to issue up to 189 units, or packages of common stock and warrants. In total, the units will add nearly 400,000 shares to its pool of outstanding shares, or a dilution of 4.7 percent.

The company expects the offering to fetch net proceeds of $621,057 after fees and expenses.

Meanwhile, the company has doubled capacity at its bottling plant in anticipation of new business from private-label customers.

"We are seeing strong interest for the private label products that we are offering to major retailers,” Chief Executive Chris Reed said in a statement. "Our production facility's unique product and packaging capabilities allow us to make a comparable margin to our existing brands with private label. For the most part, we're not competing with our own brands with the new private label business. Our current plan is to finance the growth of our branded business with the private label profits."

The company also said that two major supermarket chains expect to begin shipments of private-label drinks soon from the plant.

In mid-day trading, Reed’s stock was down 7.5 percent to $1.83 per share.