Eastside Distilling (NASDAQ:EAST) Reports Recent Sales of Unregistered Securities

Eastside Distilling, Inc. (NASDAQ: EAST) recently disclosed the sales of unregistered securities in a Form 8-K filing submitted on December 9, 2024. The company entered into a Securities Purchase Agreement with three accredited investors between December 9 and December 12, 2024. This agreement resulted in the sale of units comprising 669,790 shares of newly designated Series G Convertible Preferred Stock and five-year Warrants, enabling the purchase of 334,895 shares of the company’s Common Stock, generating total gross proceeds of $341,593.

The disclosed offering is part of Eastside Distilling’s larger plan to offer up to 5,956,467 shares of Series G and Warrants, potentially raising total gross proceeds of $3,037,800. Since the offering commenced on November 26, 2024, the company has successfully sold 2,052,143 shares of Series G and Warrants, corresponding to 1,026,072 shares of Common Stock and total gross proceeds of $1,046,593. The company intends to utilize the net proceeds, after expenses, for general corporate purposes and bolstering working capital.

The filing also mentions that Eastside Distilling entered into a registration rights agreement with the investors in connection with the sale of these units. The terms of the Securities Purchase Agreement, Series G, Warrants, and the Registration Rights Agreement were previously laid out in a Current Report on Form 8-K submitted on December 3, 2024.

The company confirmed that the offer and sale of these units were exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and were compliant with Rule 506(b) promulgated thereunder. Additional detailed information regarding the terms of the Series G, Warrants, Securities Purchase Agreement, and related transactions can be found in exhibits incorporated in the Form 8-K submitted on December 3, 2024.

Eastside Distilling provided an overview of the Exhibits associated with this filing, clearly indicating the dates, forms, and exhibit numbers for easy reference by interested parties and regulators. The company acknowledged that certain schedules, appendices, and exhibits have been omitted according to regulations but will be furnished upon request to the Securities and Exchange Commission staff.

In conclusion, Eastside Distilling’s recent filing sheds light on the successful sales of securities to accredited investors, further strengthening the company’s financial position and enabling strategic operational enhancements.

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 manufactures, acquires, blends, bottles, imports, exports, markets, and sells various alcoholic beverages. It operates through two segments, Spirits and Craft Canning + Printing. The company provides whiskey under the Burnside Whiskey brand; vodka under the Portland Potato Vodka brand; rum under the Hue-Hue Coffee Rum brand; and tequila under the Azuñia Tequila brand.