Eastside Distilling Announces Purchase of Units by Executives

On December 19, 2024, Eastside Distilling, Inc. (NASDAQ:EAST) disclosed in a Form 8-K filing with the Securities and Exchange Commission that Nick Liuzza, Jr., Chief Executive Officer of Beeline Financial Holdings, Inc., a subsidiary of the Company, made a significant purchase. Liuzza acquired $500,000 worth of units comprising 980,392 shares of Series G Convertible Preferred Stock (“Series G”) and 490,196 warrants to purchase shares of Eastside Distilling, Inc. on the same terms as other investors. Notably, Liuzza is also a principal holder of the Company’s Series F and Series F-1 Convertible Preferred Stock.

Prior to this, Joseph D. Freedman, a director of the Company, had purchased $121,593 of units including 238,418 shares of Series G and 119,209 warrants on identical terms as other investors. This purchase was previously reported in a Current Report on Form 8-K filed on December 13, 2024.

The document also mentioned a recent Securities Purchase Agreement entered into by Eastside Distilling on the same date. The agreement involved the sale of units comprising 1,080,392 shares of Series G Convertible Preferred Stock and five-year warrants to purchase 540,196 shares of the Company’s Common Stock, generating $551,000 in total gross proceeds. The sales were part of an offering of up to 5,963,467 shares of Series G and associated warrants for total gross proceeds of up to $3,037,800. Since November 26, 2024, the Company has sold a total of 3,252,144 shares of Series G and warrants to purchase 1,626,071 shares of Common Stock, accruing $1,658,593 in total gross proceeds. The Company intends to utilize the net proceeds for general corporate purposes and working capital, after deducting offering expenses.

As part of this agreement, Eastside Distilling also inked a Securities Purchase Agreement and a Registration Rights Agreement with the investors. The terms of these agreements were initially disclosed in a prior Current Report on Form 8-K submitted on December 3, 2024.

The report specified that the offer and sale of the units were exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b) established thereunder. Finally, it was noted that further details concerning the terms of the Series G, the warrants, and related agreements could be found in the Form 8-K filed on December 3, 2024 and its associated exhibits.

In conclusion, Eastside Distilling remains active in strategic transactions and capital raising activities, as evidenced by the recent purchases and agreements outlined in the filing.

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.

Eastside Distilling Company Profile

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.