Company: BLNE
Filing Date: 2025-02-05
Form Type: DEF 14A
Source: 0001493152-25-005006
Chunk: 26

Company: Beeline Holdings, Inc.
Filing Date: 2025-02-05
Form: DEF 14A
Chunk 26
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Q: When will shares of common stock underlying Proposals 1 and 2 be issued?

A:In most instances, the holders of the various series of preferred stock and warrants will decide if, when and in what quantities to exercise their rights and receive shares of common stock. With respect to the ELOC Agreement, the Company will have the right to sell shares of common stock to C/M, in an amount of up to $20 million, in accordance with the ELOC Agreement entered into for that purpose. Conversions and exercises of the series of preferred stock and warrants are subject to beneficial ownership limitations ranging from 1% to 9.99% depending upon the type of security. Because of these differences and contingencies, and the holders’ discretion, we cannot predict with certainty whether and when and the number of shares of common stock that will be issued following shareholder approval of issuances under the Proposals 1 and 2.

As stated above, the ELOC Proposal (Proposal 2) will be dependent upon registering the transaction though which C/M will publicly sell the common stock it acquires from us. Further the ELOC sales will be dependent upon our common stock trading actively in the future. We cannot assure you the market for our common stock will be liquid enough for us to raise material capital under the ELOC. Finaly, we must have authorized capital or we will have to seek further shareholder approval in the future to continue utilizing the ELOC.

Q: Do I have dissenters’ or appraisal rights with respect to the Share Issuance Proposals?

A:Eastside shareholders do not have dissenters’ or appraisal rights in connection with the Share Issuances or the Securities.

Questions and Answers About the Name Change Proposal

Q: What is the purpose of the Name Change Proposal?

A:As we state in this Proxy Statement, if Proposal 1 passes, it will result in a change of control under Nasdaq rules since more than 19.99% of our common stock will be issuable to holders of the Series F and F-1. Since former Beeline shareholders will become our largest block of shareholders and following the Merger our strategic focus has shifted to furthering the Beeline business, changing our name to Beeline Holdings, Inc. gives effect to that reality. It will also assist us in our marketing of the Beeline brand.

However, if the Merger Share Issuance Proposal (Proposal 1) is approved and the Name Change Proposal (Proposal 3) is not approved,