Shares of Eastside Distilling, Inc. EAST soared by almost 162% on Thursday during the pre-market following the disclosure of a merger agreement with Beeline Financial Holdings, Inc., a private mortgage technology firm.
Eastside unveiled that the strategic merger is the result of a thorough two-year review of its business portfolio. The merger is in line with Eastside’s objective to enhance stakeholder value and drive substantial growth across various sectors.
As part of the deal, Eastside carried out a debt-for-equity swap and sold off its Craft Canning + Digital Printing assets to a consortium of private investors. This strategic move will effectively wipe out all debt from Eastside’s books and provide Craft with additional capital for growth.
At the time of writing, the stock was trading at $1.990 while it closed at $0.760 on Wednesday, according to Benzinga Pro.
The merger entails Eastside issuing a mix of common and preferred stock to Beeline shareholders. This puts Eastside in a commanding position in the digital mortgage services industry while simultaneously expanding its craft spirits business.
The deal has received the green light from both Eastside’s and Beeline’s Board of Directors and is slated to close later this year, pending customary closing conditions and necessary approvals from Beeline shareholders.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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