EASTSIDE DISTILLING, INC. (OTCMKTS:ESDI) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On August 20, 2020, Nasdaq notified us that we no longer complied with Nasdaq Listing Rule 5550(b)(1) because our reported stockholder’s equity of $2,444,048 as of June 30, 2020 was below the minimum stockholder’s equity of $2,500,000 set forth in the Nasdaq Listing Rule by $55,952. Under the NASDAQ rules, we have 45 calendar days to submit to Nasdaq a plan to regain compliance. If Nasdaq accepts the plan, it can grant an extension of up to 180 calendar days from August 20, 2020 to evidence compliance.
We fully plan to regain compliance with the listing rule by taking actions to increase our stockholder’s equity above the minimum amount required by the rule. These actions include, but are not limited to, obtaining forgiveness of our Payroll Protection Program (PPP) loan of approximately $1,400,000, downsizing our sales and marketing force to reduce expenses by approximately $2,000,000 per year, and continued growth of revenue and gross profits in accordance with our operating strategy. Moreover, we may also consider additional actions including strategic acquisitions, strategic asset or brand dispositions, or equity capital infusions, as may be deemed necessary or reasonable and in the best interest of the stockholders. We will submit a definitive plan to regain compliance to Nasdaq on or before October 9, 2020, and we will provide an update to our stockholders about our plan on our conference call discussing our third quarter 2020 financial results.
About EASTSIDE DISTILLING, INC. (OTCMKTS:ESDI)
Eastside Distilling, Inc. (Eastside) is a manufacturer, developer, producer and marketer of master-crafted spirits. The Company’s beverage alcohol categories include bourbon, whiskey, rum and vodka. The Company operates through the marketing and distributing of hand-crafted spirits segment. Its brands include Burnside Bourbon, Burnside Oregon Oaked Bourbon, Barrel Hitch American Whiskey, Barrel Hitch Oregon Oak American Whiskey, Below Deck Silver Rum, Below Deck Ginger Rum, Below Deck Coffee Rum, Below Deck Spiced Rum, Portland Potato Vodka, Marionberry Whiskey and Cherry Bomb Whiskey. Eastside creates seasonal and limited edition handmade products, such as Advocaat (eggnog) Liqueur, Peppermint Bark Liqueur, Bier Schnapps and Holiday Spiced Liqueur. Eastside distributes its products in approximately 15 states, including Oregon, Washington, Nevada, Texas, Virginia, Indiana, Illinois, New York, New Jersey, Massachusetts, Connecticut, Minnesota, Georgia, Pennsylvania and Maryland.