Eastside Distilling (NASDAQ:EAST) Enters Equity Line of Credit Agreements and Executes Insider Loan

Eastside Distilling, Inc. (the “Company”) recently disclosed in a Form 8-K filed with the Securities and Exchange Commission that on December 31, 2024, it entered into a Common Stock Purchase Agreement and related Registration Rights Agreement, collectively known as the Equity Line of Credit (ELOC) Agreement, with an institutional investor. According to the agreement, the Company will sell up to $35 million of its common stock to the Purchaser, with a sale limit of 19.99% of the outstanding shares of the Company’s common stock before shareholder approval, in accordance with Nasdaq rules.

Moreover, as part of the agreement, the Company will issue shares of its Series G Convertible Preferred Stock or another series of convertible preferred stock to the Purchaser worth $525,000. Additionally, a side letter agreement was executed between the Company and the Purchaser, allowing for future modifications to the ELOC Agreement upon the request of the Company and its counsel, subject to the Purchaser’s approval.

The completion of the transactions outlined in the ELOC Agreement is dependent on the registration of the Purchaser’s resale of shares via a registration statement to be filed with the SEC. Notably, any conversion of underlying common stock or adherence to the terms of the ELOC Agreement by the Purchaser is subject to obtaining shareholder approval as per Nasdaq regulations.

In a separate transaction also dated December 31, 2024, Nicholas Liuzza, Chief Executive Officer of Beeline Financial Holdings, Inc., a wholly-owned subsidiary of the Company, extended a loan of $700,000 to Beeline Loans Inc., an indirect subsidiary of Eastside Distilling. In return, Beeline Loans issued Mr. Liuzza a demand promissory note with a principal amount of $700,000, accruing interest at 8% per annum, and payable within 15 days of a demand notice from Mr. Liuzza. The funds from this loan are designated to enhance Beeline Loans’ capacity to provide real estate loans, segregated in a restricted account and not utilized for operational purposes.

These recent engagements were documented in the Form 8-K filling under Items 1.01 (Entry Into a Material Definitive Agreement) and 3.02 (Recent Sales of Unregistered Securities).

No further financial details or outcomes were disclosed in the report. For complete details of the aforementioned agreements, interested parties are advised to refer to Exhibits 10.1 through 10.3 of the Current Report submitted by Eastside Distilling.

It is worth noting that all mentioned information within the filing is declared accurate to the best of the Company’s knowledge as of the date of the report, January 7, 2025.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Eastside Distilling’s 8K filing here.

About Eastside Distilling

Eastside Distilling, Inc engages in the manufacture and marketing of hand-crafted spirits. Its products include bourbon, American whiskey, vodka, and rum. The company was founded by Lenny Gotter on February 11, 2008 and is headquartered in Portland, OR.