Units offer stock or convertible preferreds with three-year warrants
By Devika Patel
Knoxville, Tenn., June 1 – Eastside Distilling, Inc. negotiated a $4.5 million private placement of units, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company will sell 30 million stock units of one common share and one warrant at $0.05 per unit and 3,000 units of one 0% series A convertible preferred share and 13,332 warrants at $1,000 per unit.
Each preferred converts to common stock at $0.075 per common share.
The warrants are each exercisable at $0.10 for three years. The strike price is a 66.67% premium to the May 31 share price of $0.06. The conversion price is a 25% premium to that price.
The spirits producer is based in Portland, Ore.
| Issuer: | Eastside Distilling, Inc.
|
| Issue: | Units of one common share and one warrant and units of one series A convertible preferred share and 13,332 warrants
|
| Amount: | $4.5 million
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.10
|
| Announcement date: | June 1
|
| Stock symbol: | OTCBB: ESDI
|
| Stock price: | $0.06 at close May 31
|
| Market capitalization: | $2.45 million
|
|
|
| Stock units
|
| Amount: | $1.5 million
|
| Units: | 30 million
|
| Price: | $0.05
|
| Warrants: | One warrant per unit
|
|
|
| Preferred units
|
| Amount: | $3 million
|
| Units: | 3,000
|
| Price: | $1,000
|
| Dividends: | 0%
|
| Conversion price: | $0.075
|
| Warrants: | 13,332 warrants per unit
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
