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Eastside Distilling , Inc. (NASDAQ:BLNE), a Nevada-based beverage company with a market capitalization of $3.68 million, has announced an increase in its Series G Convertible Preferred Stock and related warrants through a recent filing with the Securities and Exchange Commission. According to InvestingPro data, the company operates with significant debt obligations and faces challenges in maintaining adequate liquidity, with a current ratio of 0.29. On February 27, 2025, the company’s Board of Directors approved an amendment to its certificate of designations, expanding the authorized shares of Series G from 11 million to 15 million shares.
This move comes as part of a larger offering initially disclosed on December 3, 2024, which aimed to raise up to $5,037,800 but has since been increased to $7,077,800 following board approval. The offering includes up to 13,878,040 shares of Series G and warrants to purchase up to 6,939,020 shares of common stock. InvestingPro analysis reveals the company’s pressing need for capital, as it’s currently burning through cash rapidly with total debt standing at $12.83 million. To date, Eastside Distilling has sold 10,254,416 shares of Series G and corresponding warrants, resulting in proceeds of $5,054,752. The additional funds raised are earmarked for working capital and general corporate purposes.
The company’s principal shareholder and CEO of its subsidiary, Beeline Financial Holdings, Inc., Nicholas Liuzza, Jr., has invested an additional $100,000, purchasing units that include 196,078 shares of Series G and warrants for 98,039 shares. This transaction was conducted under the same terms as those offered to other investors and was pre-approved by the Audit Committee. Another accredited investor also acquired $75,000 worth of units, comprising 147,059 shares of Series G and warrants for 73,529 shares.
The sales of these securities are exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b), as they were offered to accredited investors. The terms of the Securities Purchase Agreement and Registration Rights Agreement associated with these sales were previously outlined in the December 3, 2024, Form 8-K filing.
Eastside Distilling’s expansion of its Series G offering reflects the company’s ongoing efforts to strengthen its financial position and support its growth initiatives. Despite generating revenue of $9.54 million in the last twelve months, InvestingPro analysis indicates the company faces significant financial challenges, with an overall Financial Health Score of 1.14 (WEAK). The stock currently trades at $0.74, and InvestingPro’s Fair Value analysis suggests it may be slightly undervalued at current levels. Investors can access 12 additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research report. The information for this article is based on a press release statement.
In other recent news, Eastside Distilling, Inc. has been active in securing financial resources and making strategic investments. The company has established a $35 million equity line of credit with an institutional investor, enhancing its capital resources. This agreement includes the sale of common stock, capped at 19.99% of the current outstanding shares until shareholder approval is obtained. Additionally, Eastside Distilling raised $174,000 through the sale of Series G Convertible Preferred Stock and warrants, contributing to a larger offering aimed at raising up to $5,037,800.
Eastside Distilling’s CEO, Nicholas Liuzza, has significantly increased his investment in the company by purchasing $655,000 of Series G Convertible Preferred Stock and plans to convert a $700,000 bridge loan into more shares. The company also adopted a new 2025 Equity Incentive Plan, pending shareholder approval, which could increase available shares for awards to 12 million. Furthermore, Beeline Holdings, a subsidiary of Eastside Distilling, secured $5 million in private placement funding to foster growth and reduce debt, with a focus on enhancing its AI-driven mortgage platform. These developments reflect Eastside Distilling’s strategic efforts to strengthen its financial position and operational capabilities.
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