PORTLAND, OR--(Marketwired - Jun 23, 2016) - Eastside Distilling, Inc. (OTCQB: ESDI), a producer of award-winning master-crafted spirits, today announced that it completed a $2,000,000 common stock and warrant unit offering on June 22, 2016.
A portion of this newly raised capital will be invested in marketing infrastructure in support of the expansion of the company's national roll out campaign. Remaining proceeds from the financing will be allocated for inventory purchases, debt repayment, working capital and general corporate purposes.
The company sold 40,000,000 Common Units to accredited investors at a price of $0.05 per Common Unit for an aggregate cash purchase price of $2,000,000 in this offering. Each Common Unit consisted of, 1 share of Eastside's Common Stock and one Warrant, exercisable for 3-years, to purchase one share of Eastside Common Stock at an exercise price of $0.10 per common share.
"We believe the strong support from our investors is a reflection of our unique growth and market opportunity," said Steven Earles, CEO of Eastside Distilling. "The timing of this closing fits perfectly with our drive to accelerate our national roll out strategy, allowing us to invest in achieving operational and marketing targets as we head into the all-important third and fourth quarters of the year."
Additional details regarding this transaction can be found in a Form 8-K/A filed with the Securities and Exchange Commission ("SEC") June 23, 2016, available at www.sec.gov. For more information, visit our website at www.eastsidedistilling.com.
About Eastside Distilling
Eastside Distilling, Inc. (OTCQB: ESDI) is located in Southeast Portland's Distillery Row, and has been producing high-quality, master crafted spirits since 2008. Makers of award winning spirits, the company is unique in the marketplace and distinguished by its highly decorated product line-up that includes Barrel Hitch American Whiskies, Burnside Bourbon, Below Deck Rums, Portland Potato Vodka, and a distinctive line of infused whiskeys. All Eastside spirits are master crafted from natural ingredients for unparalleled quality and taste. The company is publicly traded under the symbol OTCQB: ESDI. For more information visit: www.eastsidedistilling.com
Certain matters discussed in this press release may be forward-looking statements. 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 ability to continue as a going concern; acceptance of the Company's products in the market; the Company's success in obtaining new customers; the Company's ability to obtain additional capital, the Company's success in product development; the Company's ability to execute its business model and strategic plans; the Company's success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including the financial statements and related information contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission on April 13, 2016. Examples of forward-looking statements in this release may include statements related to our strategic focus, product verticals, anticipated revenue and profitability. The Company assumes no obligation to update the cautionary information in this release.