Eastside Distilling Inc Stock Price, News & Analysis

Eastside Distilling (NASDAQ: EAST) will hold its annual stockholder meeting on August 19, 2021, at 2:00 p.m. Pacific Time. This decision comes after a postponement due to the need for stockholders to review a proposal regarding the issuance of new warrants to purchase up to 900,000 shares of common stock. The virtual meeting aims to accelerate the Company's 3-year strategic growth plan. Eastside Distilling is known for its award-winning craft spirits, including Azuñia Tequilas and Burnside Whiskeys.

Eastside Distilling (NASDAQ: EAST) reported its Q2 2021 results, revealing a 6% decline in gross sales at $3.6 million compared to $3.8 million in Q2 2020. The drop in revenue stemmed from reduced canning services, although spirits sales increased. Improved operating margins were achieved by reducing pricing discounts and lowering year-over-year operating costs by 22%. Fully diluted EPS reached $0.13, while net loss decreased to $(1.8) million from $(2.2) million. Significant liquidity improvements were noted, with a $3.3 million financing secured through convertible promissory notes, bolstering growth prospects.

Eastside Distilling (NASDAQ: EAST) announced a 3-year strategic operating plan aimed at accelerating growth and optimizing value. Key initiatives include a proposal to increase authorized common shares from 15 million to 35 million, sourcing $7 million from new shares for capital investments. The plan targets revenues approaching $70 million by 2024 with an anticipated double-digit EBITDA margin. Management focuses on a 75/25 revenue mix between Craft C+B and Spirits, enhancing cash flow and enterprise value.

Eastside Distilling, Inc. (NASDAQ: EAST) has entered agreements with Bigger Capital Fund and District 2 Capital Fund for cash in exchange for new warrants to purchase up to 900,000 shares. The new warrants have an exercise price of $3.00 per share, becoming exercisable after shareholder approval to increase authorized common stock to at least 17 million shares. The company received approximately $2.385 million from existing warrants. A proposal to approve the new warrants will be added to the proxy materials, and the annual meeting is postponed to September 13, 2021.

Eastside Distilling, Inc. (NASDAQ: EAST) will announce its second quarter 2021 financial results after market close on August 12, 2021. A conference call to discuss the results will occur on the same date at 5:00 PM ET. Investors can join by dialing (844) 889-4332 or accessing it via a live webcast on the Company’s website. Eastside Distilling has been crafting award-winning spirits since 2008, with offerings including Azuñia Tequilas and Burnside Whiskeys. The company operates in a competitive market and faces various risks, including impacts from COVID-19 and economic conditions.

Eastside Distilling, Inc. (NASDAQ: EAST) announced a partnership with American Forests to restore the Oregon white oak habitat in the Willamette Valley. The initiative involves planting 5,000 oak trees to combat the drastic decline of this ecosystem, with only 5% remaining compared to 150 years ago. This partnership aligns with Eastside's use of locally sourced oak barrels for aging its Burnside Whiskeys, enhancing their unique flavor. Additionally, for every Burnside whiskey bottle sold, another oak tree will be planted, supporting both conservation and product identity.

Eastside Distilling reported a 4% increase in Q1 2021 sales, reaching $3.2 million, driven by a shift towards at-home consumption. Gross profit rose 3% to $0.75 million, while operating expenses decreased by 17% to $3.0 million. The company achieved a net income of $3.7 million, or $0.33 per share, compared to a loss of $3.5 million, or ($0.36) per share, in Q1 2020. Adjusted EBITDA improved to $(1.2) million. The firm ended the quarter with $4.3 million in debt and $2.0 million in cash, showcasing better liquidity and reduced borrowings.

Eastside Distilling (NASDAQ: EAST) will release its first quarter 2021 financial results on May 13, 2021, after market close. A conference call is scheduled for the same day at 5:00 PM ET to discuss these results. Interested parties can join via phone or access a live webcast on the Company's website. Eastside Distilling, based in Portland, Oregon, specializes in high-quality craft spirits.

Eastside Distilling (NASDAQ: EAST) has successfully closed a $3.3 million private placement offering with Bigger Capital Fund, LP and District 2 Capital Fund LP. The company will issue secured convertible promissory notes convertible at $2.20 per share, a 39% premium to the last closing price. Proceeds will refinance $2 million in maturing notes and cover general corporate purposes. Eastside also extended its Live Oak Bank ABL facility for 30 days. Roth Capital Partners acted as the exclusive placement agent for the offering.