Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 24

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 24
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eline in the Merger and the funding needs of that business. One potential source of such capital will be the up to $20
million ELOC Agreement with C/M, as described in more detail elsewhere in this Proxy Statement, and in order to proceed with that transaction
and other capital raising transactions involving the issuance of common stock and funding for Beeline, we must first obtain shareholder
approval for the Share Issuance Proposal. For these and other reasons, our Board has recommended that our shareholders vote “FOR”
the Merger Share Issuance Proposal and the ELOC Proposal (Proposals 1 and 2), and we urge our shareholders to carefully review and consider
the information contained and referenced in this Proxy Statement in order to make an informed decision in voting on this matter.

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Q: Will the Share Issuances be affected if the shareholders do not vote to approve the Share Issuance Proposals?

A:The Merger closed on October 7, 2024, and the Merger Shares were issued at that time. While conversions and voting rights of the Series F and Series F-1 are limited absent shareholder approval, if shareholder approval is not obtained, it will not effect the Merger because it has already occurred.

The Securities and the Share Issuances cannot result in the issuance of over the Exchange Cap of 19.99% of the Company’s outstanding common stock in violation of Nasdaq rules. Therefore, as long as the Company’s common stock remains listed on Nasdaq, issuances in connection with the Merger and subsequent transactions will be limited by that threshold. In addition, we submitted a new listing application in connection with the Special Meeting and the Merger. If we fail to obtain shareholder approval, that application may not be approved, and we could be subject to delisting by Nasdaq for failure to comply with Nasdaq Rule 5635(b) or other rules and regulations imposed by Nasdaq.

Q: What will happen following approval of the Share Issuance Proposals?

A:If the shareholders vote to approve the Share Issuance Proposals (Proposals 1 and 2), all Series F-1, F and G will become convertible and the Note and G Warrants will be exercisable by the respective holders thereof, and any voting rights in connection therewith will take effect, subject to beneficial ownership limitations set forth therein. While there are anti-dilution adjustment provisions in our outstanding preferred stock which could result in additional shares of common stock issuable upon conversion