Company: BLNE
Filing Date: 2025-02-05
Form Type: DEF 14A
Source: 0001493152-25-005006
Chunk: 32

Company: Beeline Holdings, Inc.
Filing Date: 2025-02-05
Form: DEF 14A
Chunk 32
---
 contains important information relating to the Merger Shares and the Subsequent Securities and related matters. The Merger Agreement, certificates of designations and forms of other agreements and documents that are relevant to an understanding of Proposal 1 and the common stock we may issue are included as annexes to this Proxy Statement (the “Annexes”). We encourage you to carefully read the Annexes in their entirety as they constitute the principal legal documents and agreements that govern the securities being presented to the shareholders in this Proposal 1. However, shareholders should remember that we are not asking them to approve the Merger or any other transactions or their terms, other than the issuance of shares of common stock in excess of the Exchange Cap of 19.99% of the Company’s outstanding common stock as of October 7, 2024, the closing date of the Merger.

Nasdaq Rules

Nasdaq Rule 5635(b) requires that, prior to issuing 19.99% or more of the Company’s common stock in connection with a “change of control” transaction such as the Merger, the Company must obtain shareholder approval of such issuance of excess shares. Additionally, certain Nasdaq guidance provides that transactions involving the issuance of common stock that occur within a certain time period of a change of control transaction are “aggregated” with securities issued as consideration in such change of control transaction, and are also subject to shareholder approval. This is why we are seeking approval of the issuance of shares underlying the Subsequent Securities in Proposal 1.

| 29 |

Based on this Rule and guidance, many of these securities, including the Merger Shares, contain provisions limiting their convertibility and voting rights prior to the Company obtaining shareholder approval therefor. If the shareholders vote to approve Proposal 1, all such provisions shall ceased to apply, and the conversion, exercise and voting rights of all of these securities will take effect.

Shareholder approval is being sought to enable the Merger Share Issuance Proposal (Proposal 1), as well as the Equity Line of Credit described in Proposal 2, to occur in accordance with these Nasdaq rules.

See also “Certain Nasdaq Issues” at page 11.

These Nasdaq rules and related interpretations and guidance with respect thereto are included in references to the “Nasdaq rules” for which approval is sought for each of this Proposal 1 and Proposal 2.

Nasdaq Listing

The Company is in the process of filing a new a listing application with Nasdaq pursuant to Nasdaq’s