LSD LENDING LLC TO AUCTION THE PERSONAL PROPERTY OF DEVILS RIVER HOLDINGS LLC AND DEVILS RIVER DISTILLERY, LLC VIA PUBLIC SALE

SAN ANTONIO, April 14, 2025 /PRNewswire/ -- Pursuant to Section 9-610 of the Uniform Commercial Code, LSD Lending LLC, a Texas limited liability company (the "Secured Party") will hold a secured party public sale to the highest and best bidder for cash, with reserve, to be conducted telephonically by the Secured Party on Monday May 5, 2025 at 12:00 p.m. Central Daylight Time (the "Public Sale"). Qualified Bidders (defined below) may attend the Public Sale telephonically. Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Texas Uniform Commercial Code.

The Secured Party is conducting the Public Sale to foreclose the security interest held by the Secured Party in and to substantially all of the personal property assets of Devils River Holdings LLC, a Texas limited liability company ("Holdings") and Devils River Distillery, LLC, a Texas limited liability company ("Distillery"; and, together with Holdings, the "Borrowers"), including, without limitation, (i) accounts, deposits, and cash ("Accounts"); (ii) inventory, products, stock, materials, barrels, bottles, whiskey, and spirits ("Inventory"); (iii) equipment, machinery, furnishings, furniture ("FF&E"); (iv) contract rights, investment property, chattel paper, electronic chattel paper and software, commercial tort claims, deposit accounts, letter of credit rights, health care insurance receivables, documents, documents of title, warehouse receipts, bills of lading, notes, notes receivable, instruments, general intangibles, payment intangibles, equity interests, securities, certificates of title, and policies and certificates of insurance ("Intangibles"); (v) patents, trademarks, and other intellectual property rights, proprietary yeast strains, and recipes, including, but not limited to, Bourbon, Rye, Barrel Strength, Cinnamon, Distiller's Select, Coffee, Single Barrel, Agave, and private label whiskey recipes ("Intellectual Property"); and (vi), and other property which are in the possession of or deposited with Secured Party, or which are otherwise assigned to Secured Party, or as to which Secured Party may now control possession by documents of title or otherwise. The Accounts, Inventory, FF&E, Intangibles, and Intellectual Property are collectively referred to as the "Public Sale Collateral").

At the Public Sale, all of Borrowers' right, title and interest in and to the Public Sale Collateral will be sold "as is" and "where is" and the Secured Party shall make no representation or warranty, either express or implied, relating to title, use, quiet enjoyment, possession, merchantability or fitness for a particular purpose, completeness, condition or the like, all of which are hereby disclaimed, in the sale or disposition of the Public Sale Collateral. In addition, the Public Sale Collateral, other than furniture, fixtures, and equipment located at 401 East Houston Street, San Antonio, Texas (the "Subordinated Collateral") is being sold (i) free and clear of Secured Party's liens and any subordinate security interests, and (ii) without recourse to Secured Party, its attorneys and representatives. The Subordinated Collateral is being sold subject to the contractual and statutory lien held by 401 East Houston Street, LLC, a Texas limited liability company. The Public Sale of the Public Sale Collateral, if made, shall be to the highest and best bidder.

In order to participate in the bidding process, each person or entity (a "Potential Bidder") must deliver to the undersigned (i) an executed confidentiality agreement in form and substance acceptable to Secured Party, unless waived by Secured Party, (ii) current financial statements of the Potential Bidder or other evidence acceptable to Secured Party that will show the financial ability of the Potential Bidder to purchase the Public Sale Collateral, (iii) a completed and executed Asset Purchase Agreement in the form provided by Secured Party, and (iv) a deposit in an amount equal to ten percent of the bid amount which will be held in escrow by Secured Party. A Potential Bidder that complies with the foregoing requirements shall be deemed a "Qualified Bidder". Those Qualified Bidders participating at the Public Sale shall be provided with the telephone number and passcode to attend the Public Sale and shall be given the opportunity to bid on a competitive basis.

At the Public Sale, each of the Accounts, Inventory, FF&E, Intangibles, and Intellectual Property may be offered for sale in separate lots or in combination lots and the Public Sale Collateral will be offered as a single lot. At the conclusion of the Public Sale, the successful bidder(s) must pay the final bid amount in full by a wire transfer of funds to the Secured Party. The Secured Party reserves the right to credit bid on any or all of the Public Sale Collateral at the Public Sale. The Secured Party reserves the right to reject all bids, adjourn, or cancel the Public Sale.

For further details regarding the Public Sale Collateral, obtaining the confidentiality agreement and the form asset purchase agreement, and information regarding the Public Sale, you may contact Secured Party by contacting Isaac J. Brown by email at isaac.brown@wickphillips.com or by telephone at (214) 740-4037.

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SOURCE LSD Lending LLC