Units are comprised of convertible preferreds with three-year warrants
By Devika Patel
Knoxville, Tenn., April 4 – Eastside Distilling, Inc. raised $880,000 in a private placement of units on April 4, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company sold 880 units of one 0% series A convertible preferred share and 6,666 warrants at $1,000 per unit.
Each preferred converts to common stock at an initial conversion price of $0.15 per common share.
The warrants are each exercisable at $0.18 for three years. The strike price is a 12.5% premium to the April 29 closing share price of $0.16. The conversion price is a 6.25% discount to that price.
President and chief executive officer Steven Earles purchased 185 units for $185,000
The spirits producer is based in Portland, Ore.
Issuer: | Eastside Distilling, Inc.
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Issue: | Units of one series A convertible preferred share and 6,666 warrants
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Amount: | $880,000
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Units: | 880
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Price: | $1,000
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Dividends: | 0%
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Conversion price: $0.15
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Warrants: | 6,666 warrants per unit
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Warrant expiration: | Three years
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Warrant strike price: | $0.18
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Investor: | Steven Earles (for $185,000)
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Settlement date: | April 4
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Stock symbol: | OTCBB: ESDI
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Stock price: | $0.16 at close April 1
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Market capitalization: | $7.54 million
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