Company: BLNE
Filing Date: 2025-01-03
Form Type: S-1/A
Source: 0001493152-25-000284
Chunk: 56

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-03
Form: S-1/A
Chunk 56
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 which the Company pledged the Company’s equity in Spirits, to secure its obligations under the Purchase Agreement, Notes, Warrants, and the Registration Rights Agreement (collectively, the “Transaction Documents”). Spirits concurrently entered into a Security and Pledge Agreement by and between Spirits and the holders, under which Spirits granted a security interest in all of its property and assets to secure the obligations of the Company under the Transaction Documents. Further, Spirits and Nicholas Liuzza, Jr. Chief Executive Officer of Beeline, guaranteed the Company’s obligations under the Transaction Documents.

Concurrently with the Purchase Agreement, the Company entered into a Registration Rights Agreement with each holder under which the Company agreed to file a Registration Statement to register the shares of Common Stock underlying the Warrants within 30 days of the Closing Date, and to cause such Registration Statement to be declared effective within 60 days thereafter (or 120 days thereafter if such Registration Statement is subject to a full review). The Company filed the Registration Statement, of which this Prospectus is a part, with the SEC registering the sale of the Shares by the Selling Stockholders pursuant to the Registration Rights Agreement.

The Company also entered in three forms of side letters with the holders which (i) permitted one holder which with an affiliate invested $448,333.33 to exchange that amount of stated value of shares of Series F for a $448,333.33 120-day promissory note to another affiliate, which note was issued immediately prior to the closing of the Offering and has substantially identical terms to the Notes issued therein, except it is subordinated with respect to its security interest, (ii) permit two holders to convert Series D beginning on April 7, 2025 at a conversion price equal to the lower of (i) $0.50 per share; or (ii) the five-day volume weighted average price ending on April 7, 2025, subject to a floor price of $0.25 per share, and (iii) permit two holders to receive a number of shares of Series F equal to 50% of their investment amount, or $125,000 each, using the stated value of the Series F, which is $0.50 per share, to determine the number of shares of Series F.

Joseph Gunnar & Co., LLC acted as placement agent receiving a commission of $115,908 and reimbursement of $50,000 in legal fees. The Company entered into a Placement Agency Agreement with the placement agent in connection with the transactions described above. The placement agent received