Bigger Capital Fund, LP and District 2 Capital Fund LP bought the secured convertible promissory notes. They can be converted into commons shares of Eastside Distilling for $2.20, a 39% premium to the last closing price. The two funds also received a warrant allowing them to purchase a number of shares of Common Stock equal to 60% of the principal amount of the notes.
Proceeds will refinance $2 million in maturing notes and for general corporate purposes. In addition, Eastside said it extended its Live Oak Bank to May 13, 2021, and is working to extend the loan into 2022.