Company: BLNE
Filing Date: 2025-02-05
Form Type: DEF 14A
Source: 0001493152-25-005006
Chunk: 61

Company: Beeline Holdings, Inc.
Filing Date: 2025-02-05
Form: DEF 14A
Chunk 61
---
 G Warrant offering in exchange for $150,000. The shares underlying these Series G (including the Commitment Shares) and G Warrants and the related voting and other rights thereof are included in Proposal 1 – The Merger Share Issuance Proposal. A description of the material terms of the Series G is included under “Description of Securities.”

The above descriptions of certain material terms of the ELOC Agreement, Registration Rights Agreement and side letter agreement do not purport to be complete and are qualified in their entirety by the full text of such agreements, which are included as Annex G to this Proxy Statement, which shareholders are urged to review.

Reasons for ELOC

The Company requires access to capital in order to enable it to fund its working capital and general corporate expenses. The Company may also use proceeds from the ELOC to repay indebtedness and to fund its growth initiatives. In addition following the Merger, the Company intends to use the proceeds from the ELOC to fund Beeline’s operations. Beeline’s business is capital intensive given real estate lending requires constant and substantial access to capital. Finally, the additional capital the ELOC presents may if needed help the Company maintain sufficient shareholders’ equity to maintain the minimum amount of $2.5 million in shareholders’ equity required by Nasdaq. The Company previously had a deficiency in its shareholders’ equity in 2024 which was remedied on October 7, 2024 when the debt exchange transactions closed. The closing of the Merger also increased the shareholders’ equity.

| 50 |

Consequences if the ELOC Share Issuance is Approved

Approval and completion of the ELOC Share Issuance will result in substantial dilution to Eastside’s shareholders. The estimated maximum number of shares of common stock issuable in connection with the Equity Line of Credit is 39,215,686 shares. See also disclosure under “Proposal 1 – The Merger Share Issuance Proposal,” and “Principal Shareholders” at page 51 below for further information on the estimated and potential impact of issuances in connection with the Proposals 1 and 2.

In addition, the combined potential dilution if both the Merger Share Issuance Proposal (Proposal 1) and the Equity Line of Credit Proposal (Proposal 2) are both approved, is an additional 129,848,567 shares of common stock representing approximately 94% of the outstanding common stock post-issuances, compared to 3.4% to be held by shareholders who held