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ESDI implements a 1-for-3 reverse split effective June 15, 2017.

06/16/2017
By Ian Gilson, PhD, CFA

OTC:ESDI
OTC:ESDID

In our opinion the decline in the stock price was not warranted. A temporary ticker symbol of ESDID will apply for 20 trading days.
 
On June 12, Eastside Distilling (OTC:ESDI) (OTC:ESDID) announced that the Directors had approved a 1-for-3 reverse stock split, reducing the share count from 0.94 million to 3.313 million. The impact was a decline in the stock price from $6.00 to $4.50 with unusually high volume.
 
A reverse split, in this case, bring the stock price within the requirements of major national stock exchange, such as NASDAQ. Many institutional money managers will not buy penny stocks that are traded on the equivalent of the "pink sheets".
 
With a listing on a major exchange, for example the NASDAQ, the stock is still available to its existing stockholders as a well as being attractive to the institutional market. The ability to attract capital is easier and an active listing makes transactions cheaper.

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