Eastside Distilling, Inc. said it has closed a new secured credit facility of up to $3 million in available principal amount with TQLA, LLC.
The Company has entered into a definitive agreement with TQLA, LLC to accept a one-year loan of $2 million with a conditional additional loan of $1 million and a conditional term extension of six months. The loan will bear interest at 9.25% and carry a commitment fee of 2.5%. The Company will issue a common stock purchase warrant to TQLA covering the loan amount with a strike price of $1.20.
Geoffrey Gwin, Eastside’s CEO, said, “This is an encouraging development and will help us fund the growing working capital needs of the business as we launch digital can printing. We greatly value the partnership with a key stakeholder such as Pat Kilkenny.”