Eastside Distilling, Inc. Provides Update on its Merger with Beeline Financial Holdings, Inc.
Beeline is well-positioned with its AI platform in an improving mortgage market
Beeline is addressing the Mortgage Needs of 100M Millennials and Gen Z
PORTLAND, Ore. and PROVIDENCE, R.I., Nov. 6, 2024 /PRNewswire/ -- Eastside Distilling, Inc. ("Eastside") (Nasdaq: EAST) today announced that the recent merger between Eastside Distilling and Beeline is proving to be beneficial for both companies. For Eastside, its shareholders are now also invested in an emerging AI-driven mortgage platform designed for rapid growth in an industry expected to expand in 2025. Beeline shareholders gain access to a public market for their investment.
Beeline is a direct-to-consumer mortgage origination and technology company providing mortgages to homeowners and investors seeking an easier path through a digital platform. It processes applications and answers questions for mortgage borrowers 24/7 for both conventional and non-qualified mortgages. Most of the top 50 lenders will deny a borrower if they cannot qualify for a conventional mortgage. Beeline, however, offers non-qualified mortgages. The underwriting for these loans is often more suited to consumers who earn income in the gig economy or who are self-employed. Beeline's platform was built for digital-first consumers - making it the perfect fit for Millennials and Gen Z. According to Maxwell, nearly 60% of all mortgages generated in 2023 were from Millennials and Gen Z. Combined this class makes up about 100M consumers.
According to Nick Liuzza, CEO of Beeline, "There is no doubt our team saw the opportunity to address the mortgage needs of a large emerging audience who grew up with mobile devices and the ability to obtain real-time certainty and transact any time of the day. Our platform, brand, and processes were designed for these generations and many of the platforms out there are not consistently meeting the needs of Millennials and Gen Z. We are excited to serve these important consumers in a more material way in 2025."
Beeline was the first mortgage lender to introduce its AI Chabot named "Bob" in June of 2023. "Bob" is currently performing six times better in converting a lead from an initial chat conversation to a completed loan application than its human counterparts. The cost to operate Bob is 90% less than the associated payroll to perform these functions. Bob has his own brain - he speaks in alignment with Beeline's brand while logically sequencing sophisticated conversations. Unlike other AI chat bots, he is not tied to a set of responses - making him truly unique in his approach.
The Mortgage industry has experienced tough times since early 2021 when rates rose quickly and those conditions persisted through the first half of 2024. Many large lenders saw their revenues drop 70-90% from 2021 to 2023. Through all of this, Beeline was building its AI platforms and incurring financial losses intentionally. Beeline knew that when the market normalized it would be ready to capitalize with a modern solution for Millennials and Gen Z. This decision laid the foundation for an opportunity for Beeline and Eastside Distilling shareholders.
The Mortgage Bankers Association released projections that the mortgage market should grow to $2.6 trillion in 2025, which is a 28% increase over 2024. Beeline is still small, especially when compared to legacy, well-established lenders but its technology and platform are compelling and the timing of this merger aligns very well with current market demand and dynamics.
About Eastside Distilling, Inc.
Eastside Distilling, Inc. (Nasdaq: EAST) is a producer of award-winning craft spirits, including whiskey, vodka, and rum. Founded in Portland, Oregon, Eastside is committed to quality, innovation, and sustainability, delivering exceptional products that reflect the spirit of the Pacific Northwest.
About Beeline Financial Holdings, Inc.
Beeline Financial Holdings, Inc. is a technology-driven mortgage lender offering a fully digital, AI-enhanced, platform that simplifies and accelerates the home financing process for homeowners and property investors. Based in Providence, RI, Beeline is dedicated to transforming the mortgage industry through innovative technology and customer-centric solutions.
Important Cautions Regarding Forward-Looking Statements
Certain matters discussed in this press release may be forward-looking statements that reflect our expectations or anticipations rather than historical fact. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions, general competitive factors, the Company's ongoing financing requirements and ability to achieve financing, acceptance of the Company's products in the market, the Company's success in obtaining new customers, the Company's ability to execute its business model and strategic plans, and other risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"). A detailed discussion of the most significant risks can be found in the "Risk Factors" section of the Company's Annual Report on Form 10-K. The Company assumes no obligation to update the cautionary information in this press release.
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SOURCE Eastside Distilling, Inc.
