Eastside Secures Working Capital Facilities

PORTLAND, Ore., Dec. 5, 2019 /PRNewswire/ -- Eastside Distilling, Inc. (NASDAQ: EAST), today announced it has secured two working capital facilities with a maximum borrowing capacity totaling $4 million providing the Company additional liquidity and flexibility as it continues to execute on its business plans.

The Company closed a new Accounts Receivable factoring agreement with ENGS Commercial Capital, LLC, totaling up to $2 million. The agreement allows Eastside to borrow up to 85% of eligible accounts receivable subject to various terms and conditions outlined in the agreement. The agreement has an initial term of one year and automatically renews for successive one-year renewal periods unless terminated pursuant to the terms of the Factoring Agreement.

The Company also secured a $2 million revolving line of credit with TQLA, LLC which matures on April 15, 2020.  The Company may use the proceeds to purchase tequila for its Azuñia product line and for general corporate purposes, as approved by the lender.

"The closing of these working capital facilities was a key business objective for Eastside enabling us to execute on a number of important initiatives and work toward our strategic objectives without the need for equity dilution," commented Lawrence Firestone, Eastside's CEO. "We appreciate the commitment from ENGS Commercial Capital and look forward to working with them in the future to support the growth in Eastside. Further, the revolving line of credit from TQLA, LLC provides a bridge as we work to finalize a larger, expanded inventory working capital facility to maximize flexibility of our valuable spirits inventory going forward."

Additional details on the working capital facilities can be found in an 8-K filed today at www.sec.gov.

About Eastside Distilling
Eastside Distilling, Inc. (NASDAQ: EAST), founded in 2008, has developed, matured, perfected or acquired, then launched many award-winning spirits, while evolving to meet the growing demand for quality products and services associated with the burgeoning craft and premium beverage trade. The Company's portfolio includes Redneck Riviera Whiskey, a partnership with John Rich, the multi-platinum country-music artist and one-half of the award-winning duo Big & Rich, the Quercus Garryana barrel-finished Burnside Whiskey family, Azuñia Organic Tequilas, Hue-Hue Cold Brewed Coffee Rum, Portland Mule canned cocktails, Outlandish CBD Seltzers and Tonics, and others. The Company is honored to give a percentage of sales proceeds on Redneck Riviera products to Folds of Honor, a charitable foundation that awards scholarships to spouses and children of fallen veterans. In addition to the Company's branded products, the Company has strategically enhanced its capabilities to bring new and trending products to the market, including its Craft Canning + Bottling subsidiary, which 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: a lender agreeing to enter into a further working capital facility; the Company's ability to execute its business model and strategic plans; acceptance of the Company's products in the market;  changes in economic conditions; general competitive factors; the Company's success in obtaining new customers; the Company's success in product development; the Company's success in integrating acquired entities and assets, 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 our finalizing or entering into a larger, expanded inventory working capital facility; our use of proceeds and our ability to utilize our credit facilities to the maximum amount available. The Company assumes no obligation to update the cautionary information in this release.

SOURCE Eastside Distilling, Inc.