SCHEDULE 13G/A: Michael Bigger and Affiliated Funds Update Stake in Eastside Distilling, Reporting 1.2% Beneficial Ownership

Sentiment:

Beneficial Ownership Disclosure (Schedule 13G Amendment)


Michael Bigger and associated entities, including Bigger Capital Fund and District 2 Capital Funds, have filed an Amendment No. 5 to Schedule 13G, disclosing a combined beneficial ownership of 1.2% in Eastside Distilling, Inc. as of February 1, 2025.

Capital raiseThe filing references 75,047 shares issuable upon the exercise of Pre-Funded Warrants, which are subject to shareholder approval.It also details 1,031,787 shares of Common Stock issuable to Bigger Capital upon conversion of Series D Preferred Stock, convertible from April 7, 2025.Additionally, 400,000 shares of Common Stock are issuable to Bigger Capital upon conversion of Series E Preferred Stock, convertible from November 1, 2025.District 2 CF has 1,350,476 shares of Common Stock issuable upon conversion of Series D Preferred Stock, convertible from April 7, 2025.District 2 CF also has 600,000 shares of Common Stock issuable upon conversion of Series E Preferred Stock, convertible from November 1, 2025.

Summary

  • Michael Bigger, through his affiliated entities Bigger Capital Fund L.P. and District 2 Capital Fund L.P., reported a beneficial ownership of 55,954 shares of Eastside Distilling, Inc. common stock, representing approximately 1.2% of the outstanding class.
  • Each of Bigger Capital Fund L.P. and District 2 Capital Fund L.P. individually reported beneficial ownership of 27,977 shares, equating to 0% of the outstanding common stock.
  • The reported percentages are based on 4,689,503 shares of Common Stock outstanding as of January 31, 2025, as disclosed by Eastside Distilling, Inc. in its Amendment No. 1 to Form S-3 filed on February 11, 2025.
  • The filing explicitly states that the securities were not acquired or held for the purpose of changing or influencing control of the issuer, except for activities solely related to a nomination under Rule 14a-11.
  • B.A.D. Company, LLC and Bigger Capital, LLC, previously reporting persons, are no longer deemed beneficial owners as B.A.D. distributed all its securities in the Issuer to its members after the last Schedule 13G amendment filed on October 23, 2024.

Sentiment

Score: 5

Explanation: The document is a factual, regulatory filing (Schedule 13G Amendment) disclosing beneficial ownership. It contains no subjective language or forward-looking statements from the issuer that would indicate positive or negative sentiment.

Future Outlook

NA

Industry Context

This filing is a routine disclosure of beneficial ownership by institutional investors and individuals, common in the financial industry. It does not provide specific insights into Eastside Distilling's operational performance or broader industry trends, but rather reflects a passive investment stake.

Stakeholder Impact

  • Shareholders: The filing provides transparency regarding the ownership stake of Michael Bigger and his affiliated funds, indicating a passive investment approach as the purpose is not to change or influence control, except for potential nomination activities.

Next Steps

  • Shareholder approval is required for the exercise of 75,047 Pre-Funded Warrants.
  • Conversion of Series D Preferred Stock into common shares for Bigger Capital and District 2 CF will be possible from April 7, 2025.
  • Conversion of Series E Preferred Stock into common shares for Bigger Capital and District 2 CF will be possible from November 1, 2025.

Key Dates

DateDescription
2023-10-10Date of previous Amendment No. 3 to Schedule 13G filed by the Reporting Persons.
2024-10-23Date of the last Schedule 13G amendment filed by the Reporting Persons, after which B.A.D. Company, LLC distributed its securities.
2024-12-31Date of event which requires filing of this statement (Amendment No. 5).
2025-01-31Date as of which 4,689,503 shares of Common Stock were outstanding, as disclosed by the Issuer.
2025-02-01Date as of which beneficial ownership amounts were calculated for this filing.
2025-02-11Date Eastside Distilling, Inc. filed Amendment No. 1 to Form S-3, disclosing outstanding shares.
2025-02-13Date this Schedule 13G Amendment No. 5 was signed.
2025-04-07Earliest conversion date for shares of Series D Preferred Stock held by Bigger Capital and District 2 CF.
2025-11-01Earliest conversion date for shares of Series E Preferred Stock held by Bigger Capital and District 2 CF.

Keywords

Eastside Distilling, Schedule 13G, Beneficial Ownership, SEC Filing, Michael Bigger, Bigger Capital Fund, District 2 Capital Fund, Common Stock, Investment Fund, Shareholder Disclosure

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