PORTLAND, Ore.—Nicholas Reyland Liuzza Jr., CEO of a subsidiary of Eastside Distilling, Inc. (NASDAQ:EAST), has made significant purchases of the company's common stock, according to a recent SEC filing. On December 9 and 10, Liuzza acquired a total of 45,000 shares, with prices ranging from $0.77 to $0.825 per share, amounting to an investment of approximately $36,749. The micro-cap company, currently valued at $4.28 million, has seen its stock surge over 20% in the past week, according to InvestingPro data.
These transactions follow earlier acquisitions on October 10 and 15, where Liuzza bought a combined 4,000 shares at prices between $0.5146 and $0.5403, totaling $2,109. Following these transactions, Liuzza now holds 49,000 shares directly. InvestingPro analysis indicates the stock trades below its Fair Value, though investors should note the company's weak financial health score of 1.36 out of 5.
These moves come as Eastside Distilling continues to navigate the evolving beverage market, with Liuzza's transactions indicating a show of confidence in the company's prospects. Despite challenging conditions, the company has achieved impressive revenue growth of 82% over the last twelve months. For deeper insights into EAST's financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Eastside Distilling, Inc. has been active in bolstering its financial position. The company raised $110,000 through the issuance of Series G Convertible Preferred Stock and warrants to two accredited investors. This is part of an ongoing offering that aims to raise up to $3,037,800. Eastside Distilling also secured $440,000 through a direct equity placement and initiated a registered direct offering aiming to raise $350,000.
In a significant move, Eastside Distilling acquired Beeline Financial Holdings, a digital mortgage technology firm, anticipating benefits from favorable market conditions. The company also appointed a new independent registered public accounting firm, Salberg & Company, P.A., after dismissing its previous auditor, M&K CPAS, PLLC. This decision was made in response to identified weaknesses in the company's internal controls related to impairment testing policies.
InvestingPro analysis indicates that Eastside Distilling's financial health is currently weak, with a high cash burn rate. The company's gross profit for Q3 2024 in its spirits division increased to $783,000, driven by strong vodka sales, while the tequila brand Azuñia faced distribution-related challenges. These are recent developments in the company's operations and financial activities.
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