Eastside Distilling raises $174,000 in securities sale

Eastside Distilling, Inc., a beverage company based in Portland, Oregon, has entered into a securities purchase agreement with an accredited investor, resulting in the sale of equity securities for total gross proceeds of $174,000. The transaction took place on January 26, 2025, as part of a larger offering that commenced on November 26, 2024. According to InvestingPro data, the company’s stock has shown strong momentum, with a 22.27% return over the past year and is currently trading near its 52-week high of $41.17.

The company, listed on The Nasdaq Stock Market under the symbol EAST, sold 341,176 shares of its Series G Convertible Preferred Stock and warrants to purchase an additional 170,588 shares of common stock. This recent sale contributes to the ongoing offering, which has been increased from its original amount of $3,037,800 to up to $5,037,800 following board approval on January 20, 2025. InvestingPro analysis indicates the stock’s RSI suggests overbought territory, and investors should note the company’s weak gross profit margins. Get access to 4 additional ProTips and comprehensive financial analysis with InvestingPro.

To date, Eastside Distilling has raised a total of $3,157,593 from accredited investors through the sale of 6,191,359 shares of Series G and warrants to purchase 3,095,679 shares of common stock. The net proceeds from the offering are intended for working capital and general corporate purposes. InvestingPro data shows the company faces challenges with its free cash flow yield, making this capital raise particularly significant for its operations.

The terms of the securities purchase agreement and related registration rights agreement were outlined in a previous report filed on December 3, 2024. The sale of the units was exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b) promulgated thereunder.

This report is based on a press release statement and provides key information for investors regarding Eastside Distilling’s recent financial activities. The details of the securities, including the forms of the Series G, the warrants, the securities purchase agreement, and the registration rights agreement, are available for reference in the exhibits of the Form 8-K filed on December 3, 2024. For deeper insights into EAST’s financial health and comprehensive analysis, investors can access detailed metrics and expert analysis through InvestingPro.

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