Eastside Distilling (NASDAQ:EAST) Enters Securities Purchase Agreement and Files Certificate of Designation of Series G Preferred Stock

Eastside Distilling, Inc. recently disclosed in a Form 8-K filing with the Securities and Exchange Commission that from November 26 to December 2, 2024, the company entered into a Securities Purchase Agreement with two accredited investors. The agreement involved the sale of units comprising a total of 1,166,667 shares of a newly designated Series G Convertible Preferred Stock (“Series G”) and five-year warrants to purchase 583,333 shares of the company’s Common Stock, generating total gross proceeds of $595,000.

The net proceeds from this transaction, after deducting offering expenses and related costs, are intended to be used by Eastside Distilling for working capital and general corporate purposes. A registration rights agreement was also established with the investors, requiring Eastside to file a registration statement to register the shares of Common Stock underlying the Series G and warrants within 30 trading days following the final closing or termination of the offering.

The warrants issued as part of the agreement have an exercise price of $0.65 per share and become exercisable upon the approval of an increase in authorized Common Stock of the company as needed to allow for full issuance alongside other pertinent approvals. The offering was conducted under exemptions from registration provided under Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b).

In conjunction with this, on November 26, 2024, Eastside filed a Certificate of Designation of Series G Preferred Stock with the Nevada Secretary of State. The key terms of the Series G Preferred Stock were outlined in the filing, including a stated value of $0.51 per share and provisions for conversion upon shareholder approval.

Additionally, on December 2, 2024, a Certificate of Correction was filed to include a floor price for the Series G conversion price. Furthermore, subsequent Certificates of Correction were filed for the Series F and Series F-1 Preferred Stock, correcting language related to beneficial ownership limitations.

The aforementioned descriptions are excerpts from the complete documents filed as Exhibits 3(a) – 3(c), 4(a), and 10(a) – 10(b) in the Current Report on Form 8-K, which can be accessed for comprehensive details regarding the recent transactions.

Investors and stakeholders keen on further financial statements and exhibits are advised to refer to the full Form 8-K filing for additional information.

This news was made public to comply with the requirements of the Securities Exchange Act of 1934, ensuring transparency and disclosure within the financial markets.

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.