Eastside Distilling, Inc. Announces Positive Business and Financial Updates

PORTLAND, Ore., June 13, 2023 /PRNewswire/ -- Eastside Distilling, Inc. (NASDAQ:EAST) ("Eastside" or the "Company"), a consumer-focused beverage company that builds and supplies craft-inspired experiential brands and high-quality artisan products announces it has signed a non-binding term sheet with key first and second lien debt holders that, if completed, will convert a substantial portion of outstanding debt to equity.  This would significantly reduce interest expense going forward and help the Company to regain compliance with the Shareholders Equity Rule for continued Nasdaq listing. In the proposed transaction, principal creditors would exchange $6.2 million of debt for equity at an exchange rate of no less than $4.00 per common share equivalent and no more than $4.80 per common share equivalent.  New equity would be limited to less than 20% of total voting stock with the balance in new non-voting convertible preferred stock.  In addition, interest payments on the remaining debt would be restructured and certain debt maturities would be extended.  These changes would have a materially positive impact on cash flow and support the Company's growth initiatives, especially in digital can printing.