Company sells 14% convertible promissory note to WWOD Holdings in deal
By Devika Patel
Knoxville, Tenn., Sept. 17 – Eastside Distilling, Inc. settled a $275,000 private placement of a 14% convertible promissory note with WWOD Holdings, LLC on Sept. 11, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal priced on Sept. 10.
The note was sold with an original issue discount of $33,500 for $241,500.
The note is due May 10, 2016 and can be prepaid at any time.
The note is initially convertible into common shares at $1.00 per share, an 11.11% premium to the Sept. 9 closing share price of $0.90. Beginning March 10, 2016, the conversion price will be the lesser of $1.00 or 65% of the lowest trading price of the company’s common stock during the five trading days prior to conversion.
Proceeds will be used for working capital and general corporate purposes.
The spirits producer is based in Portland, Ore.
| Issuer: | Eastside Distilling, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $275,000
|
| Maturity: | May 10, 2016
|
| Price: | $241,500
|
| Coupon: | 14%
|
| Conversion price: | Initially $1.00; beginning March 10, 2016, the lesser of $1.00 or 65% of the lowest trading price of the company’s common stock during the five trading days prior to conversion
|
| Call option: | At any time
|
| Warrants: | No
|
| Investor: | WWOD Holdings, LLC
|
| Pricing date: | Sept. 10
|
| Settlement date: | Sept. 11
|
| Stock symbol: | OTCBB: ATRN
|
| Stock price: | $0.90 at close on Sept. 9
|
| Market capitalization: | $32.27 million
|
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