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 Coast, the “Company”), today announced that it has entered into loan agreements with Live Oak Banking Company (“Live Oak Bank”) under the Coronavirus Aid Paycheck Protection Program (“PPP”), Relief, and Economic Security Act (“CARES Act”) totaling approximately $ 1.4 million generally.
Together with its partners at Live Oak Bank, Eastside Distilling and Craft Canning applied for, obtained approval, and took out loans under the Keeping American Workers Paid and Employed Act, which was included in the $ 2.2 trillion The CARES law entered into force on March 27, 2020. The funding will bring additional strength to the balance sheet during this unprecedented period of global economic challenge associated with the COVID-19 pandemic.
This financing will bear interest at a rate of 1% per annum and, based on the current operating plan of the company, the company estimates that the majority of the principal amount of the loans can be forgiven, provided it uses the proceeds. funding 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 conclusion of each loan. For the loan to be forgivable, at least 75% of the proceeds must be used for qualifying labor costs, and the discount is reduced proportionately to the extent that the company had to reduce the payroll during that eight-week period below. full-time equivalent employment. levels from previous historical levels. If a portion of this funding were not to be applied to qualifying expenses during this eight week period, the company would be required to repay the excess amount without any prepayment penalty.
“We are pleased to have a partner from Live Oak Bank who drove such a fast 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. East Coast,” mentionned Lawrence firestone, CEO of Eastside Distilling. “Having access to this form of funding will allow us to continue to execute our plans as we go through this crisis.”
The definitive loan agreements will be included in a Form 8-K filed with the Securities and Exchange Commission.
About Eastside Distillation
Eastside Distilling, Inc. (NASDAQ: EAST) produces high-quality, award-winning craft spirits in Portland, Oregon, since 2008. The company sets itself apart with its highly decorated product line which includes Redneck Riviera and companion brand Granny Rich Whiskey, newly acquired Azuñia Tequilas, Burnside Bourbons and Rye, Hue-Hue Coffee Rum and Portland Potato Vodkas. All East Coast spirits are made from natural ingredients for their quality and taste. Eastside’s The Craft Bottling + Canning subsidiary is one of the leading independent bottlers of ready-to-drink spirits and preservatives in the Northwest. For more information visit: www.eastsidedistilling.com or follow the company on Twitter and Facebook.
Important Precautions Regarding Forward-Looking Statements
Certain matters discussed in this press release may be forward-looking statements. These matters involve risks and uncertainties that can cause actual results to differ materially, including the following: changes in economic conditions; changes to our business plans and strategies; general competitive factors; the impact of COVID-19 (including its duration and severity) and related business disruption and economic impact; the success of Eastside Distilling’s business and operations; and all risks and related information described from time to time in documents filed by the Company 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 the interim quarterly reports on Form 10-Q. Examples of forward-looking statements in this release may include statements relating to the completion of the financing of the PPP loan, including the timing of the financing, the terms of the PPP loan, including planned loan extensions and cancellations, the use the company’s planned PPP loan funds, the company’s plans regarding payroll and employment levels, the company’s ability to repay any loan amount that has not been otherwise canceled, the company’s ability of the company to capitalize on future opportunities following the current crisis, and any additional PPP loans that the company may obtain in the future. Except as required by law, the Company assumes no obligation to update the cautionary information contained in this release.
SOURCE Eastside Distilling, Inc.