Eastside Distilling, Inc. Renews NASDAQ Equity Compliance

Rhea-AI Summary

Eastside Distilling (NASDAQ: EAST) reported significant balance sheet improvements, exceeding NASDAQ's shareholder equity standards. Key enhancements include the Paycheck Protection Program forgiveness of $1,044,500, debt-to-equity conversion of $5,618,000, and a $4,000,000 equity boost from the Redneck Riviera transaction. The maturity of its senior loan facility has been extended to April 13, 2021. CFO Geoffrey Gwin highlighted increased liquidity to support growth in the expanding craft spirits market. Updates are expected during the 4th quarter earnings call in March.

Positive

• Achieved NASDAQ equity compliance through multiple balance sheet initiatives.
• Forgiveness of Paycheck Protection Program loan totaling $1,044,500.
• Converted $5,618,000 of debt to equity, enhancing financial stability.
• Closed Redneck Riviera transaction, contributing $4,000,000 to equity.
• Extended senior loan maturity, increasing financial flexibility.

Negative

• None.

PORTLAND, Ore., Feb. 16, 2021 /PRNewswire/ -- Eastside Distilling, Inc. ("Eastside" or the "Company") (NASDAQ: EAST) announced today that it has progressed its balance sheet initiatives in order to exceed NASDAQ's ongoing shareholder equity listing standards. The three areas of improvement have come from (1) Paycheck Protection Program forgiveness of $1,044,500; (2) the conversion of debt to equity of $5,618,000 by issuing 1,200,000 shares per the Azuñia earnout agreement; and (3) the close of the Redneck Riviera transaction delivering an estimated $4,000,000, benefit to equity.

In addition to the above mentioned improvements, the Company has executed an amendment to its senior loan facility with Live Oak Bank to extend the maturity to April 13, 2021 and expects the facility to be extended into 2022.  The Company will update investors on these actions and its progress on the 4^th quarter earnings call in March.  "We have made good progress on our balance sheet initiatives and have significantly increased the overall liquidity of the Company," Geoffrey Gwin, CFO of Eastside, commented. "Management continues to build a balance sheet that can support the operating plan and take advantage of the fast-growing craft spirits marketplace," Gwin added.

About Eastside Distilling
Eastside Distilling, Inc. (NASDAQ: EAST) has been producing high-quality, award-winning craft spirits in Portland, Oregon, since 2008. The Company is distinguished by its highly decorated product lineup that includes Azuñia Tequilas, Burnside Whiskeys, Hue-Hue Coffee Rum, and Portland Potato Vodkas. All Eastside spirits are crafted from natural ingredients for quality and taste. Eastside's Craft Canning + Bottling subsidiary is one of the Northwest's leading independent ready-to-drink canners.

Important Cautions Regarding Forward-Looking Statements
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 impact of COVID-19 and related business disruption, the Company's ongoing financing requirements and ability to achieve any financing, acceptance of the Company's products in the market; the Company's success in obtaining new customers; 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 and interim Quarterly Reports on Form 10-Q. Examples of forward-looking statements in this release may include statements related to the strategic focus, product verticals, anticipated revenue and profitability, the ability to reduce operating or other expenses, the anticipated demand from the craft beer industry, the effects of COVID-19, including the impact on sales, and the success of initiatives implemented to address the business disruption resulting from COVID-19 and earnings guidance for 2020 and beyond. The Company assumes no obligation to update the cautionary information in this release.

View original content:http://www.prnewswire.com/news-releases/eastside-distilling-inc-renews-nasdaq-equity-compliance-301228581.html

SOURCE Eastside Distilling, Inc.

FAQ

What recent balance sheet improvements has Eastside Distilling announced?

Eastside Distilling reported forgiveness of a $1,044,500 PPP loan, conversion of $5,618,000 in debt to equity, and an estimated $4,000,000 benefit from the Redneck Riviera transaction.

When is Eastside Distilling's next earnings call?

Eastside Distilling will update investors on its progress during the 4th quarter earnings call, scheduled for March.

What is the significance of the loan extension for Eastside Distilling?

The extension of the senior loan facility to April 13, 2021, provides Eastside Distilling with increased financial flexibility.

How does Eastside Distilling plan to support its operating plan?

CFO Geoffrey Gwin stated that the company is building a balance sheet to support its operating plan and leverage growth in the craft spirits market.