Eastside Distilling Announces $0.4 Million Registered Direct Offering, Priced at a Premium to Market Under Nasdaq Rules
Rhea-AI Summary
Eastside Distilling (Nasdaq: EAST) has announced a $0.4 million registered direct offering of 442,042 shares of common stock (or pre-funded warrants) to a single institutional investor at $1.00 per unit. The offering, priced at a premium to market under Nasdaq rules, is expected to close around September 6, 2024. Joseph Gunnar & Co., is acting as the exclusive placement agent. The offering is made pursuant to a shelf registration statement filed with the SEC. Eastside Distilling, based in Portland, Oregon, is a producer of craft spirits including whiskey, vodka, and rum, focusing on quality, innovation, and sustainability.
Positive
- Offering priced at a premium to market under Nasdaq rules
- Single institutional investor participating, potentially indicating confidence in the company
- Registered direct offering, which can be a more efficient method of raising capital
Negative
- Small offering size of $0.4 million may not significantly impact the company's financial position
- Potential dilution for existing shareholders
- Reliance on external funding may indicate cash flow challenges
News Market Reaction
On the day this news was published, EAST gained 89.47%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
The transactions are expected to close on or about September 6, 2024, subject to the satisfaction of customary closing conditions.
Joseph Gunnar & Co., LLC is acting as the exclusive placement agent for the offering.
The shares of common stock and pre-funded warrants in the registered direct offering were offered pursuant to a "shelf" registration statement on Form S-3 (File No. 333-259295) initially filed with the Securities and Exchange Commission (the "SEC") on September 3, 2021, and declared effective by the SEC on September 14, 2021. The offering of the common stock and pre-funded warrants and shares of common stock underlying the pre-funded warrants in the registered direct offering was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting Joseph Gunnar & Co., LLC Attention: Syndicate Department at 40 Wall Street, 30th Floor,
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
Eastside Distilling, Inc.
Eastside Distilling, Inc. is a producer of award-winning craft spirits, including whiskey, vodka, and rum. Founded in
For investor information, visit https://www.eastsidedistilling.com/investors
Please follow social media channels for additional updates:
LinkedIn Company Page: https://www.linkedin.com/company/eastside-distillery/
Facebook Company Page: https://www.facebook.com/EastsideDistilling?fref=ts
Important Cautions Regarding Forward-Looking Statements
Certain matters discussed in this press release may be forward-looking statements that reflect our expectations or anticipations rather than historical fact. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions, general competitive factors, the Company's ongoing financing requirements and ability to achieve financing, acceptance of the Company's products in the market, the Company's success in obtaining new customers, the Company's ability to execute its business model and strategic plans, and other risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"). A detailed discussion of the most significant risks can be found in the "Risk Factors" section of the Company's Annual Report on Form 10-K. The Company assumes no obligation to update the cautionary information in this press release.
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SOURCE Eastside Distilling, Inc.
FAQ
What is the size and price of Eastside Distilling's (EAST) registered direct offering announced on September 5, 2024?
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What products does Eastside Distilling (EAST) produce?
