Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 10

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 10
---
 including a debt exchange agreement where the indebtedness was exchanged for, among other things, preferred stock and common stock. This debt exchange agreement closed on October 7, 2024, which permitted us to meet the Nasdaq shareholders’ equity requirement. Following this and related to the former indebtedness we sold our label printing business to these former debt holders, one of which is a director and another of which is the spouse of one of our directors. See “Related Party Transactions” later in this Proxy Statement. We also closed the Merger on October 7 th, which we believe also eliminated the shareholders’ equity deficiency. Nasdaq also advised us in a subsequent letter that our common stock bid price fell below the required $1.00 price, which is the minimum bid price requirement under Nasdaq rules. As of January 15, 2025, the closing price of our common stock was $0.8015. If our stock price does not increase materially before the deadline of February 15, 2025, we can alleviate the Nasdaq non-compliance by effecting a reverse stock split. In December 2024, our shareholders approved a reverse stock split authorizing our board of directors (the “Board”) to implement a reverse stock split in the range of 1-for 2 to 1-for-10. Most often the market capitalization decreases following a reverse split. Assuming we regain compliance with the Nasdaq minimum bid price, we must also comply with certain continued Nasdaq listing requirements including:

| ● | One              
 of the following |

| ○ | $2.5                             
 million of shareholders’ equity; |

| ○ | $35                                              
 million in market value of listed securities; or |

| ○ | $500,000                                                                                   
 in net income from continuing operations (in the latest fiscal year or tin two of the last 
 three fiscal years).                                                                       |

| ● | 500,000               
 publicly held shares. |

| ● | $1                                                   
 million in market value of publicly held securities. |

| ● | $1         
 bid price. |

| ● | 300             
 public holders. |

| ● | Two             
 market markers. |

| 11 |

Assuming our shareholders approve the issuance of all of the common stock issuable under Proposal 1, such Proposal and the resulting issuances involve a change of control for Nasdaq purposes with former Beeline shareholders acquiring 82.5% of outstanding common stock and certain preferred stock up to the limit explained on page 29 of