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.
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SOURCE Eastside Distilling, Inc.