By Ian Gilson PhD, CFA
On March 14, 2017 the company (OTC:ESDI) announced that it has acquired MotherLode Craft Distillery of Portland, Oregon. Motherlode is a custom bottler and provider of production support to craft distilleries in the Portland area. The founder of MotherLode will join Eastside.
Eastside will relocate most of its operations to MotherLode's facility, which will be expanded to handle large volumes of spirits, including a pneumatic bottling line.
The acquisition will reduce the operation costs of Eastside and will generate additional revenue to the company.
The cost of the acquisition was 260,000 shares of stock, valued at $0.377 million at the time of the purchase. This was about one times 2016 revenue. Eastside's stock is currently selling at close to five times revenue. The cost is expected to be recouped within 18 months.READ THE FULL RESEARCH REPORT HERE
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