PORTLAND, Ore.--(BUSINESS WIRE)--Eastside Distilling, Inc. (NASDAQ: EAST) today announced that a total of 1,845,978, or 98.2%, of its warrants to purchase shares of common stock, which were sold in its public offering of units in August 2017 and the warrants sold in the note offering between March and June 2018 (collectively, the “Warrants”) were exercised prior to their expiration at 5:00 pm Pacific time on September 20, 2018. As a result of the exercise of the Warrants, Eastside received gross proceeds of approximately $9.97 million and issued a total of 1,845,978 shares of Common Stock. Part of the warrant exercises occurred during the first and second quarters, as previously reported, with the balance being exercised during the third quarter.
On August 3, 2018, Eastside announced its notice of redemption of all outstanding Warrants. Each Warrant was exercisable for a single share of Eastside’s common stock at an exercise price of $5.40. The 34,022 remaining Warrants that were not exercised by the September 20, 2018 deadline will now be redeemed by the company for a price of $0.15 each, for an aggregate redemption cost to Eastside of $5,103.
Additionally, ROTH Capital Partners, the Company’s underwriter for the August 2017 offering, elected to purchase 60,000 of their underwriter units at $5.40 per share as well as exercise the corresponding 60,000 warrants at $5.40 per share. As a result of the exercise of the underwriter units, Eastside received gross proceeds of an additional $648,000.
Following the redemption of the Warrants and underwriter units, 7,199,905 shares of Eastside’s common stock are issued and outstanding.
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 Burnside Bourbon, West End American Whiskey, Goose Hollow Reserve, Below Deck Rums, Portland Potato Vodka, Hue-Hue Coffee Rum and a distinctive line of fruit infused spirits. Eastside Distilling is majority owner of Big Bottom Distilling (makers of The Ninety One Gin, Navy Strength Gin and Delta Rye whiskey) and the Redneck Riviera Whiskey Co. All Eastside, Big Bottom and Redneck Riviera spirits are crafted from natural ingredients for quality and taste. Eastside’s MotherLode Bottling subsidiary is one of the Northwest’s leading independent spirit bottlers and ready-to-drink canners. For more information visit: www.eastsidedistilling.com or follow the company on Twitter and Facebook.
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; 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 our strategic focus, product verticals, anticipated revenue, and profitability. The Company assumes no obligation to update the cautionary information in this release.