Eastside Distilling, Inc. (NASDAQ: EAST), a producer of craft spirits, announced that it closed an underwritten public offering of 1,235,000 shares of its common stock at a public offering price of $6.50 per share on November 23, 2018. Eastside received net proceeds from this offering of approximately $7.2 million after deducting the underwriting discount and other estimated offering expenses. Eastside has granted the underwriters a 30-day over-allotment option to purchase up to 185,250 additional shares of common stock.
Eastside intends to use the net proceeds from the offering for marketing efforts for the Company’s Redneck Riviera Whiskey; to support the Company’s CBD initiative; and for working capital needs and general corporate purposes including potential acquisition opportunities.
Roth Capital Partners acted as sole book-running manager for the offering. National Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (Nasdaq: NHLD), acted as a co-manager in connection with the offering.
The offering of common stock was made pursuant to Eastside’s shelf registration statement filed with the Securities and Exchange Commission (SEC) and declared effective. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.
A final prospectus supplement has been filed with the SEC. Copies of the final prospectus supplement and the accompanying base prospectus relating to the offering are available on the SEC's website at http://www.sec.gov.
Safe Harbor
This press release contains forward-looking statements regarding the public offering and the intended use of proceeds from the offering. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially, including those risks disclosed in under the caption "Risk Factors" in the prospectus related to the offering. Eastside cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
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