The transaction underscores Eastside's commitment to deliver value to its
shareholders by entering the rapidly changing Mortgage Origination
& Technology sector and to also enhance the Spirits' portfolio
through increased scale & collaboration leveraging Beeline's
consumer intelligence tools.
PORTLAND, Ore. and PROVIDENCE, R.I., Sept. 4,
2024 /PRNewswire/ -- Eastside Distilling, Inc.
(Nasdaq: EAST) today announced it had signed a Merger Agreement
with Beeline Financial Holdings, Inc., a privately-held pioneering
mortgage technology company that operates an end-to-end,
all-digital, AI-enhanced platform for homeowners and property
investors. This strategic move follows a comprehensive two-year
review of Eastside's business
portfolio and aligns with the company's mission to maximize value
for all stakeholders while achieving significant growth across
multiple sectors.
In conjunction with this transaction, Eastside has executed a debt-for-equity
exchange with, and asset sale of Craft Canning + Digital Printing
to, a group of private investors. This transaction effectively will
eliminate all debt from Eastside's
balance sheet and provides Craft with access to additional growth
capital to accelerate the expansion of its digital printing
business in the Pacific Northwest. The Debt Exchange Agreement and
related instruments are expected to close immediately prior to the
merger closing.
As merger consideration, Eastside will issue Beeline shareholders a
combination of common and preferred stock. This strategic
partnership positions Eastside as
a leader in the digital mortgage services space while continuing to
grow its legacy craft spirits business.
The transaction will benefit both parties. For Eastside it includes access to proprietary
technology in human-level B2C sales AI tools. Beeline is among the
first in mortgage origination to deliver AI-driven customer service
tools and is now launching sales support AI leading to lower cost
conversions for Direct-to-Consumer platforms. For Beeline, it is an
opportunity to create liquidity for its shareholders while growing
in the public markets and in a more favorable real estate financing
environment with forecasted lower mortgage
rates.
"Mortgage origination has yet to fully experience the dynamic
and exciting transformation seen in other financial services
sectors," said Nick Liuzza,
co-founder and CEO of Beeline. "Our disruptive, cloud-based,
go-to-market strategy targets Millennials and Gen Z borrowers. The
benefits of operating in the public markets to help Beeline achieve
its goals are significant."
Geoffrey Gwin, CEO of
Eastside, commented, "I couldn't
be more thrilled about this new growth platform, the opportunities
it presents for our shareholders and the talented team and
innovative technology joining the Eastside family. This development offers
tremendous potential for our stakeholders. Nick and his team have
demonstrated remarkable innovation and share a vision that aligns
perfectly with our strategic objectives."
The transactions are subject to customary closing conditions,
including required Beeline shareholder approvals and closing of the
transactions contemplated by the Debt Exchange Agreement. Both
Eastside's Board and Beeline's
Board of Directors have approved the deal, which is expected to
close later this year. For further details on the expected
closing see the Form 8-K filed by Eastside with the Securities and Exchange
Commission.
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.
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SOURCE Eastside Distilling, Inc.
