Company: BLNE
Filing Date: 2025-02-05
Form Type: DEF 14A
Source: 0001493152-25-005006
Chunk: 47

Company: Beeline Holdings, Inc.
Filing Date: 2025-02-05
Form: DEF 14A
Chunk 47
---
DI. To reflect the effect of the distribution on the transactions contemplated by the Debt Exchange Agreement, the parties, on October 3, 2024, executed the First Amended and Restated Debt Exchange Agreement (the “Debt Agreement”).

The Company entered into the Debt Agreement in order to be able to comply with Nasdaq’s shareholders’ equity requirement since it had received a deficiency letter that gave it until October 7, 2024 to meet Nasdaq’s $2,500,000 minimum equity requirement. While the Company eliminated $12,763,396 of indebtedness, Craft represented its largest business line. Further the Company had to convey 47% of Spirits which occurred in November 2024.

Subsequent to execution of the Debt Exchange Agreement, Eastside organized Spirits as a subsidiary and assigned to Spirits all of the assets held by Eastside in connection with its business of manufacturing and marketing spirits. Spirits issued 1,000,000 shares of common stock to Eastside.

On October 7, 2024 the closing of the following transactions under the Debt Agreement occurred:

| ● | Aegis,                                                                                           
 Bigger, District 2 and LDI transferred to Eastside a total of 31,234 shares of Eastside Series   
 C and 119,873 shares of Eastside common stock. The lenders also released Eastside from liability 
 for $4,137,581 of senior secured debt and $2,465,169 of unsecured debt. In consideration         
 of their surrender of stock and release of debt, Eastside caused Craft to be merged into         
 a limited liability company owned by the lenders.                                                |
| ● | Eastside                                                                                         
 issued a total of 255,474 shares of Series D to Bigger and District 2, and Bigger and District   
 2 released Eastside from liability for $2,554,746 of unsecured debt.                             |

| 39 |

| ● | Eastside                                                                                         
 issued a total of 200,000 shares of Series E to Bigger and District 2, and Bigger and District   
 2 released Eastside from liability for $2,000,000 of unsecured debt.                             |
| ● | Eastside                                                                                         
 transferred a total of 108,899 shares of Spirits to Bigger, District 2, Esping, WPE and Grammen, 
 and those lenders released Eastside from unsecured debt in the aggregate amount of $888,247.     |
| ● | Eastside                                                                                         
 issued a