PORTLAND, Ore., April 16, 2020 /PRNewswire/ -- Eastside
Distilling, Inc. (NASDAQ: EAST) ("Eastside") and Craft Canning + Bottling, LLC,
a subsidiary of Eastside ("Craft
Canning," and together with Eastside, the "Company"), today announced that
they have entered into loan agreements with Live Oak Banking
Company ("Live Oak Bank") under the Paycheck Protection Program
("PPP") of the Coronavirus Aid, Relief, and Economic Security Act
("CARES Act") totaling approximately $1.4
million in aggregate.
Working with its partners at Live Oak Bank, Eastside Distilling
and Craft Canning applied for, received approval for, and entered
into loans under the Keeping American Workers Paid and Employed
Act, which was included in the $2.2
trillion CARES Act signed into law on March 27, 2020. The funding will provide
additional balance sheet strength during this unprecedented time of
global economic challenge related to the COVID-19 pandemic.
This funding will accrue interest at a rate of 1% per annum and,
based on the Company's current operating plan, the Company believes
that the majority of the principal amount of the loans may be
forgiven, provided that it uses the funding proceeds for eligible
payroll costs, eligible utility expenses, eligible rent payments
and interest on pre-existing mortgage debt, in each case during the
eight-week period after entering into each loan. For the loan to be
forgivable, 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 as
compared to prior historical levels. If any portion of this funding
were not to be applied to eligible expenses during that eight-week
period, the Company would be required to repay the excess amount
without any prepayment penalty.
"We are pleased to have a partner in Live Oak Bank who drove
such a fast and efficient process to get our final loan documents
processed and quickly funded for the PPP loan helping to cover
payroll and other applicable costs at Eastside," said Lawrence Firestone, CEO of Eastside Distilling.
"Access to this form of funding will allow us to continue to
execute our plans while we ride through this crisis."
The 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) has been producing high-quality, award-winning craft
spirits in Portland, Oregon, since
2008. The Company is distinguished by its highly decorated product
lineup that 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
Eastside spirits are crafted from
natural ingredients for quality and taste. Eastside's Craft Bottling + Canning subsidiary
is one of the Northwest's leading independent spirit bottlers and
ready-to-drink canners. 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. Such matters involve risks and
uncertainties that may cause actual results to differ materially,
including the following: changes in economic conditions; changes to
our operating plans and our 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
the risks and related 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 related to the
completion of the funding of the PPP loan, including timing of
funding, the terms of the PPP loan, including any anticipated
extensions and loan forgiveness, the Company's anticipated use of
the PPP loan funds, the Company's plans regarding payroll and
employment levels, the Company's ability to repay any loan amounts
that are not otherwise forgiven, the Company's ability to
capitalize on future opportunities following the current crisis,
and any additional further 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 in this
release.
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SOURCE Eastside Distilling, Inc.