PORTLAND, Oregon., April 16, 2020 /PRNewswire/ — Eastside Distilling, Inc. (NASDAQ: EAST) (“East Coast“) and Craft Canning + Bottling, LLC, a subsidiary of East Coast (“Craft Canning”, and with East Coastthe “Company”), today announced that it has entered into loan agreements with Live Oak Banking Company (“Live Oak Bank”) under the Paycheck Protection Program (“PPP”) of the Act. Coronavirus Aid, Relief, and Economic Security (“CARES Act”) totaling approximately $1.4 million generally.
Together with its partners at Live Oak Bank, Eastside Distilling and Craft Canning applied for, received approval for, and completed loans under the Keeping American Workers Paid and Employed Act, which was included in the $2.2 trillion The CARES Act signed into law on March 272020. The financing will strengthen the balance sheet during this unprecedented time of global economic challenge related to the COVID-19 pandemic.
This financing will bear interest at a rate of 1% per annum and, based on the company’s current operating plan, the company estimates that the majority of the principal amount of the loans can be forgiven, provided that it uses the proceeds financing for eligible payroll costs, eligible utility expenses, eligible rent payments and interest on pre-existing mortgage debt, in each case for the eight-week period following the inception of each loan. For the loan to be repayable, at least 75% of the proceeds must be used for eligible payroll costs, and the forgiveness is reduced proportionately to the extent that the Company were to reduce payroll during that eight-week period below full-time equivalent employment. levels from previous historical levels. If a portion of this funding was not applied to qualifying expenses during this eight-week period, the Company would be required to repay the excess amount without a prepayment penalty.
“We are delighted to have a partner at Live Oak Bank who drove such a quick and efficient process to have our final loan documents processed and quickly funded for the PPP loan helping to cover payroll and other applicable costs. to East Coast,” mentioned Lawrence Firestone, CEO of Eastside Distilling. “Access to this form of funding will allow us to continue to execute our plans as we navigate through this crisis.”
Final loan agreements will be included in a Form 8-K filed with the Securities and Exchange Commission.
About Eastside Distilling
Eastside Distilling, Inc. (NASDAQ: EAST) produces premium, award-winning craft spirits in Portland, OR, since 2008. The company is distinguished by its highly decorated product line which includes Redneck Riviera and the associated Granny Rich Whiskey brand, newly acquired Azuñia tequilas, Burnside bourbons and rye, Hue-Hue Coffee rum and Portland vodkas. Potato. All East Coast spirits are made from natural ingredients for quality and taste. east side Subsidiary Craft Bottling + Canning is one of the Northwest’s leading independent bottlers of spirits and canned ready-to-drink. For more information visit: www.eastsidedistilling.com or follow the company on Twitter and Facebook.
Important Cautions Regarding Forward-Looking Statements
Certain matters discussed in this press release may be forward-looking statements. These matters involve risks and uncertainties that could cause actual results to differ materially, including: changes in economic conditions; changes to our operating plans and strategies; general competitive factors; the impact of COVID-19 (including its duration and severity) and related business disruptions and economic impact; the success of Eastside Distilling’s business and operations; and all related risks and information described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the financial statements and related information contained in the Company’s annual report on Form 10-K and interim quarterly reports on Form 10-Q. Examples of forward-looking statements in this release may include statements relating to the completion of the PPP loan financing, including the timing of the financing, the terms of the PPP loan, including any planned extension and cancellation of the loan, the the Company’s intended use of the PPP Loan Fund, the Company’s plans regarding payroll and employment levels, the Company’s ability to repay any loan amount not otherwise cancelled, the Company’s ability to the company to capitalize on future opportunities following the current crisis, and any additional PPP loans the company may obtain in the future. Except as required by law, the Company assumes no obligation to update the cautionary statements contained in this release.
SOURCEEastside Distilling, Inc.
Related links
https://www.eastsidedistilling.com
