Accelerated closing timeline underscores significant market opportunity for Beeline in connection with anticipated additional Fed rate cuts and increasing mortgage application volumes
Simultaneously completes previously announced debt for equity exchange to strengthen balance sheet and sale of Craft Canning + Printing
Well-known mortgage industry veterans to join Company's Board of Directors
PORTLAND, Ore. and PROVIDENCE, R.I., Oct. 10, 2024 /PRNewswire/ -- Eastside Distilling, Inc. ("Eastside") (Nasdaq: EAST) today announces the closing of its Merger Agreement with Beeline Financial Holdings, Inc. ("Beeline"), a privately-held pioneering mortgage and title technology company that developed and operates an end-to-end, all-digital, artificial intelligence ("AI")-enhanced platform for homeowners and property investors. Eastside also completed a debt-for-equity exchange and the asset sale of Craft Canning + Printing. The terms of the merger, debt exchange and asset sale were first announced September 4, 2024.
As merger consideration, Eastside has issued to Beeline shareholders a combination of common and preferred stock. In addition, the Eastside Board of Directors has appointed two new independent board members having extensive experience with emerging growth companies, Joe Freedman and Joe Caltabiano, effective immediately. Eastside's Board of Directors appointed Christopher Moe, the Chief Financial Officer of Beeline, to serve as the Chief Financial Officer of Eastside.
Geoffrey Gwin, Eastside's CEO stated, "I am thrilled to have finalized this agreement to bring Beeline into a public company environment, and to share a unique growth opportunity with our stakeholders. Beeline has put together a fabulous team and powerful technology, and we are very excited to begin this next chapter of building a great franchise together."
This strategic partnership positions Eastside as an emerging leader in the digital mortgage origination space while continuing to grow its legacy craft spirits business. Beeline is among the first in mortgage origination to deliver AI-driven customer service tools and is now launching sales support AI, to facilitate lower-cost conversions for Direct-to-Consumer platforms.
"Tailwinds are emerging in the mortgage space, leading to month-over-month double-digit percentage revenue growth for Beeline," said Nick Liuzza, CEO of Beeline. "Beeline has built a disruptive platform leveraging proprietary AI to outpace many of our competitors while capitalizing on increased refinance activity which is expected to continue as rates continue to come down in the near-term."
The transaction has been approved by Beeline's shareholders and Eastside's Board of Directors. Eastside's shareholders will vote on the transaction later this year. In addition, Eastside believes with the successful close of this transaction, it will have satisfied Nasdaq's Continued Listing requirements. For further details see Form 8-K filed by Eastside with the Securities and Exchange Commission on October 7, 2024.
About Eastside Distilling, Inc.
Eastside Distilling, Inc. (Nasdaq: EAST) is a producer of award-winning craft spirits, including whiskey, vodka, and rum. Founded in Portland, Oregon, Eastside is committed to quality, innovation, and sustainability, delivering exceptional products that reflect the spirit of the Pacific Northwest.
About Beeline Financial Holdings, Inc.
Beeline Financial Holdings, Inc. is a technology-driven mortgage lender offering a fully digital, AI-enhanced, platform that simplifies and accelerates the home financing process for homeowners and property investors. Based in Providence, RI, Beeline is dedicated to transforming the mortgage industry through innovative technology and customer-centric solutions.
Important Cautions Regarding Forward-Looking Statements
Certain matters discussed in this press release may be forward-looking statements that reflect our expectations or anticipations rather than historical fact. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions, general competitive factors, the Company's ongoing financing requirements and ability to achieve financing, acceptance of the Company's products in the market, the Company's success in obtaining new customers, the Company's ability to execute its business model and strategic plans, and other risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"). A detailed discussion of the most significant risks can be found in the "Risk Factors" section of the Company's Annual Report on Form 10-K. The Company assumes no obligation to update the cautionary information in this press release.
SOURCE Eastside Distilling, Inc.
