PORTLAND, Ore., Jan. 16, 2020 /PRNewswire/ -- Eastside
Distilling, Inc. (NASDAQ: EAST), today announced it has closed a
new asset-based revolving credit facility of up to $8 million in available principal amount with
Live Oak Bank backed by the Company's spirits inventory. The
Company expects to use this new credit facility to pay off and
replace the two existing inventory facilities of $5 million capacity with KFK and TQLA and to fund
general working capital. In addition to the increased availability
of up to $3 million, the new credit
facility offers a number of potential advantages to Eastside, including a reduction in the
interest rate. The new credit facility, coupled with the
$2 million Accounts Receivable
factoring agreement signed in December
2019, provides the Company with up to $10 million of aggregate financing to refinance
existing debt and fund growth in the business.
"We are extremely pleased to have closed this new $8 million inventory facility with Live Oak Bank
allowing us to consolidate our debt and increase our borrowing
capacity by further leveraging our valuable spirits inventory,"
commented Lawrence Firestone,
Eastside's CEO. "The completion of
this inventory facility, coupled with our recently signed accounts
receivable facility, were key objectives to access capital in a
non-dilutive structure to fund the growth of the business going
forward. We look forward to working with Live Oak Bank on an
ongoing basis, as they have demonstrated a strong understanding of
the value of our spirits inventory as an appreciable asset and are
supportive of our going forward strategy to grow Eastside
Distilling."
Additional details on the new credit facility can be found in an
8-K filed today at www.sec.gov.
About Eastside Distilling
Eastside Distilling, Inc.
(NASDAQ: EAST) has been producing high-quality, craft spirits in
Portland, Oregon since 2008. The
company is known for its award-winning product line, including
Redneck Riviera Whiskeys, Azuñia Tequila, Hue-Hue Coffee Rum,
Burnside Bourbons, Portland Potato Vodkas, and a distinctive line
of fruit infused spirits. All Eastside spirits are crafted
from natural ingredients for quality and taste. Eastside's Craft Bottling + Canning 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: the availability of credit under the
Company's new credit facility, which is subject to a borrowing
base; the Company's ability to execute its business model and
strategic plans; acceptance of the Company's products in the
market; changes in economic conditions; general competitive
factors; the Company's success in obtaining new customers; the
Company's success in product development; 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
use of proceeds and our ability to utilize our credit facilities to
the maximum amount available. The Company assumes no obligation to
update the cautionary information in this release.
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SOURCE Eastside Distilling, Inc.