Units offer stock or convertible preferreds with three-year warrants
By Marisa Wong
Morgantown, W.Va., June 23 – Eastside Distilling, Inc. has settled additional tranches of stock units and preferred units, according to an 8-K filing with the Securities and Exchange Commission.
From June 4 to June 22, the company sold 40 million common units for a total purchase price of $2 million, including 18 million common units for a purchase price of $900,000 that settled on Wednesday.
From June 8 to June 17, the company sold 42 preferred units for proceeds of $42,000.
On June 15 the company announced it increased its private placement of units to $5 million from $4.5 million. The deal was announced June 1 and raised $1.14 million from June 4 to June 9, as previously reported.
The company is selling 40 million stock units of one common share and one warrant at $0.05 per unit and 3,000 preferred units of one 0% series A convertible preferred share and 13,332 warrants at $1,000 per unit. It previously planned to sell 30 million stock units.
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.
In the first tranche, the company sold 22 million stock units and 39 preferred units, as previously reported.
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: | $5 million
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.10
|
| Announcement date: | June 1
|
| Upsized: | June 15
|
| Settlement dates: | June 4 to June 9 for $1,139,000, June 22 for $942,000
|
| Stock symbol: | OTCBB: ESDI
|
| Stock price: | $0.06 at close May 31
|
| Market capitalization: | $2.62 million
|
|
|
| Stock units
|
| Amount: | $2 million
|
| Units: | 40 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
|
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