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  • Takeover News Sends Eastside Distilling (EAST) Skyrocketing In Pre-Market

    Takeover News Sends Eastside Distilling (EAST) Skyrocketing In Pre-Market

    Shares of Eastside Distilling, Inc. (NASDAQ: EAST) have experienced a remarkable surge on U.S. stock charts following the announcement of a potential takeover. As of the most recent pre-market update, EAST stock has soared by 258.74%, reaching a value of $2.73.

    Eastside Inked Strategic Merger With Beeline Financial

    Eastside Distilling and Beeline Financial Holdings, Inc., a privately held mortgage technology firm renowned for its cutting-edge, artificial intelligence-enhanced digital platform catering to homeowners and real estate investors, have agreed into a Merger Agreement. This merger is in line with Eastside’s goal to increase stakeholder value while pursuing expansion across several industries and is the end of an extensive two-year evaluation of the company’s business portfolio.

    Debt Elimination And Asset Sale

    As part of the merger, Eastside Distilling has also executed a debt-for-equity exchange and sold its Craft Canning + Digital Printing business to a consortium of private investors. This move is set to eliminate all outstanding debt from Eastside’s balance sheet, providing Craft with additional capital to expand its digital printing operations in the Pacific Northwest. The Debt Exchange Agreement, along with the related transactions, is anticipated to finalize immediately before the merger’s closure.

    Mutual Benefits Of The Transaction For EAST

    The merger presents significant benefits for both parties involved. Through the purchase, Eastside Distilling will have access to Beeline’s exclusive AI-powered customer support solutions, which have significantly decreased Direct-to-Consumer platform conversion costs. Beeline is a pioneer in the market thanks to its creative, cloud-based approach to mortgage origination, which focuses on Millennials and Gen Z customers in particular.

    Beeline sees the acquisition as a chance to expand in the public markets and provide its shareholders access to liquidity. With a favorable outlook on real estate financing and anticipated lower mortgage rates, the timing is ideal for Beeline’s expansion.

    Future Prospects And Conclusion

    The merger is expected to deliver significant potential for Eastside Distilling’s stakeholders. As part of the deal, Eastside will issue a combination of common and preferred stock to Beeline shareholders. This strategic partnership not only propels Eastside into the digital mortgage services market but also strengthens its legacy in the craft spirits industry. The Boards of Directors of both firms have approved the transaction, which is anticipated to finalize later this year.

  • Eastside Distilling, Inc. Surges in Premarket Despite Market Confusion

    Eastside Distilling, Inc. (NASDAQ: EAST) known for its hand-crafted spirits, witnessed a surprising turn of events in the premarket session today.

    After a recent dip of nearly 4%, the stock skyrocketed by an astounding 50%, reaching $1.44 per share. However, this sudden surge has left market observers perplexed, especially considering the absence of any significant news to explain the dramatic reversal.

    Challenges and Progress

    In the earnings call a few months ago, CEO Geoffrey Gwin acknowledged the company’s strides towards achieving positive operating cash flow but highlighted ongoing challenges, particularly in the face of economic headwinds affecting both the craft beverage and spirits sectors.

    Despite these obstacles, notable improvements were noted, such as in the Craft digital printing segment, which showcased positive developments despite challenges in the mobile canning business. In the spirits sector, there was a significant reduction in EBITDA loss, with promising performances from products like Portland Potato Vodka.

    Financial Overview

    Tiffany Milton, during the quarterly review, provided insights into the financial performance. Gross sales remained steady, with improvements in digital can printing offsetting lower mobile canning and spirits sales. Consolidated gross profit saw a notable increase, primarily attributed to improvements in Craft’s digital can printing operations. However, adjusted EBITDA remained negative, largely due to a loss recorded on the conversion of debt to equity during the quarter.

    Conclusion

    Despite facing challenges, Eastside Distilling, Inc. appears to be making progress in key areas of its business. The unexpected surge in its stock price adds an intriguing twist to its narrative, leaving investors and analysts eager for further clarity on the underlying factors driving this sudden market activity. As the company continues its efforts to address challenges and capitalize on opportunities, stakeholders remain cautiously optimistic about its future trajectory.

  • Eastside Distilling Inc. (EAST) stock rises during pre-market trading. Here’s to know why?

    Eastside Distilling Inc. (EAST) stock rises during pre-market trading. Here’s to know why?

    Eastside Distilling Inc. (EAST) stock showed a rise of 0.56% in the last trading closed while the EAST stock continued to rise by 6.08% in the pre-market trading session. Eastside Distilling has not reported any recent news hence we will look at the recent past developments to see any relevance with the current EAST share price. Since 2008, Eastside Distilling has been making exceptionally good craft spirits in Portland, Oregon. The company is known for its award-winning product line, which includes Azuia Tequilas, Burnside Whiskeys, Hue-Hue Coffee Rum, and Portland Potato Vodkas.

    IMPORTANT DEVELOPMENTS

    • On March 26, EAST announced that Liz Levy-Navarro has been appointed to the Eastside’s Board of Directors, since March 22, 2021. Ms. Levy-Navarro will chair the Compensation Committee and also work on the Audit, Nominating, and Corporate Governance Committees. Ms. Levy-Navarro has spent her career assisting market leaders in expanding their companies and brands as a CEO, public and private sector board member, consumer goods practice leader, and value creation specialist.
    • On March 1, Eastside announced that with the new “Eastside Brand” and the new Eastside range of spirits products, Eastside is extending its premium spirits line. The Eastside unique products will focus on the Company’s passion to provide our loyal customers with the most creative, highest-quality, hand-crafted, small-batch products. Almost all of the items will be restricted and only available in a few locations. The product will ship in late March and should be on store shelves in April.

    Conclusion

    From the above mentioned positive developments in Eastside, it is possible that the current rise in EAST stock is because of the experienced working of Ms. Lis Levy-Navarro for Eastside, making sure that the investors feel interested and comfortable in making long-term investments in EAST stock. Also, the launch of a new brand by Eastside is a great step towards progress.