Eastside Distilling, Inc. (EAST) saw its shares skyrocket on Thursday following the announcement of a merger agreement with Beeline Financial Holdings, Inc., a privately-held mortgage technology company. The deal is a game-changer for Eastside, as it involves a debt-for-equity exchange and asset sale of Craft Canning + Digital Printing to private investors. This transaction effectively eliminates all debt from Eastside’s balance sheet and provides Craft with access to crucial growth capital.
As part of the merger, Beeline shareholders will receive a combination of common and preferred Eastside stock as consideration. Geoffrey Gwin, CEO of Eastside, expressed his enthusiasm about the merger, highlighting the growth opportunities and innovative technology that Beeline brings to the Eastside family.
The news of the merger sent Eastside shares soaring, with over 91 million shares traded in the session, a significant volume considering the company’s float of only 1.323 million shares.
How to Invest in EAST Stock
If you’re interested in investing in Eastside Distilling, you can purchase shares through a brokerage account. Many platforms allow fractional share purchases, making it possible to own portions of a stock without buying an entire share, which can be particularly helpful for expensive stocks.
Shorting a stock, which involves betting against a company’s price decline, is a more complex process that requires access to an options trading platform or a broker that allows short selling. This involves borrowing shares to sell, aiming to buy them back at a lower price to profit from the difference.
EAST Stock Performance
At the time of publication on Thursday, Eastside Distilling shares were trading at $2.66, representing a 249.9% increase. This surge in price is a direct result of the positive market sentiment surrounding the Beeline merger.
The merger with Beeline Financial marks a significant step forward for Eastside Distilling, positioning the company for future growth and expansion. The elimination of debt and the infusion of capital into Craft Canning + Digital Printing will undoubtedly contribute to the company’s long-term success. Investors will be closely watching Eastside’s performance in the coming months as the merger unfolds.
