Form 4: Eastside Distilling Executive Acquires Convertible Preferred Stock in Merger

Nicholas Reyland Liuzza Jr., CEO of an Eastside Distilling subsidiary, acquired Series F and F-1 Convertible Preferred Stock as part of a merger agreement.

Summary

• Nicholas Reyland Liuzza Jr., CEO of a subsidiary of Eastside Distilling, Inc., filed a Form 4 detailing changes in beneficial ownership.
• The filing reports the acquisition of Series F-1 and Series F Convertible Preferred Stock on October 7, 2024, as part of a merger agreement where Eastside Distilling acquired Beeline Financial Holdings, Inc.
• Liuzza acquired 121,695 shares of Series F-1 Convertible Preferred Stock and 16,330,860 shares of Series F Convertible Preferred Stock, both at an exercise price of $0.50.
• The Series F Convertible Preferred Stock can only vote following the first trading day following shareholder approval and increase in authorized common stock and assumes conversion within 60 days from the transaction date.

Sentiment

Score: 6

Explanation: The sentiment is neutral as it simply reports a transaction related to a merger. The acquisition of preferred stock by an executive is neither inherently positive nor negative.

Future Outlook

The Series F Convertible Preferred Stock is convertible into shares of the Issuer's common stock and only may vote following the first trading day following shareholder approval and increase in authorized common stock. Assumes conversion within 60 days from the Transaction Date.

Industry Context

Form 4 filings are standard practice when company insiders, like officers or directors, trade their company's stock. This filing indicates changes in Liuzza's holdings due to the merger.

Stakeholder Impact

• The acquisition of preferred stock by a company insider could be of interest to shareholders.

Key Dates

Keywords

Form 4, Beneficial Ownership, Eastside Distilling, Convertible Preferred Stock, Merger, Acquisition, Series F-1, Series F, Liuzza, Beeline Financial Holdings