MOREHEAD, Ky. — Eastern Light Distilling has completed key financing milestones for its planned $60 million contract distillery in Morehead, positioning the company to accelerate construction and begin production by late 2027.
The Kentucky-owned company secured $23.1 million in private investment, which helped it obtain USDA-backed financing through Magnolia Bank and Commercial Property Assessed Clean Energy financing from Avrio CleanFund. Together, the financing sources allowed Eastern Light to exceed its $60 million capital goal.
The company said the private investment represents one of Kentucky’s largest private capital raises this year. Investors include family offices, individual investors and investment funds.
“Achieving this defining financial milestone for Eastern Light is a strong endorsement of the enterprise we are building,” said Cordell Lawrence, CEO and co-founder. “We are creating a more transparent model for whiskey brands, and with this support in place, we’re excited to fuel a distilling platform that can serve customers for years to come.”
Founded in 2024 by Lawrence and master distiller Caleb Kilburn, Eastern Light is developing a 50,000-square-foot facility designed to produce more than 125,000 barrels annually. The company expects it to become Kentucky’s largest distillery dedicated exclusively to contract production.
Contract distilleries produce whiskey for other brands, allowing companies to develop and market their own products without constructing and operating a distillery. Eastern Light plans to serve established and emerging brands in domestic and international markets.
The project will bring a major bourbon production facility to Eastern Kentucky, expanding an industry traditionally concentrated in the central and western portions of the state.
“Eastern Light is redefining how independent brands bring their whiskeys to life, but our vision has always been about more than just spirits,” Kilburn said. “Eastern Kentucky has the heritage, talent and ingredients needed to make its mark, and we are honored to play a role in its growth.”
Magnolia Bank structured and originated the USDA Rural Development-backed senior loan supporting the project.
“Eastern Light has demonstrated exceptional preparation, financial discipline and a clear understanding of how to build a world-class value-added manufacturing operation,” said Dana Dow, interim president and CEO of Magnolia Bank.
Matterhorn Securities served as a strategic investment adviser to Eastern Light.
“Eastern Light has assembled an exceptional management team with a clear vision for building a differentiated business in the spirits industry,” Managing Director Mike Stanchina said.
Additional information about the financing and distillery project is available through Eastern Light Distilling.
