Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 1

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 1
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 corporation (“Beeline”). The Merger Agreement, as amended, is attached as Annex A to the accompanying Proxy Statement. Under the terms of the Merger Agreement, Beeline merged with and into Merger Sub and became a wholly-owned subsidiary of the Company (the “Merger”). In the Merger, Eastside issued to the former shareholders of Beeline a total of 517,775 shares of a newly designated Series F-1 Convertible Preferred Stock (the “Series F”) and a total of 69,482,229 shares of a newly designated Series F Convertible Preferred Stock (the “Series F,” and together with the Series F-1, the “Merger Shares”). Subject to certain limitations, including approval of Eastside’s shareholders of the Merger and transactions related thereto including full conversion of the Merger Shares, the Merger Shares are convertible into a total of 70,000,000 shares of Eastside common stock, representing approximately 82.5% of the Company’s common stock after giving effect to the full conversion thereof and certain other issuances, subject to certain adjustments. Beeline is a fintech mortgage lender and title provider. In connection with the Merger, Eastside also agreed to issue stock options and warrants to former holders of Beeline stock options and warrants (the “Derivatives”).

Following the closing of the Merger, the Company has raised capital through the issuance of stock and derivative securities convertible or exercisable into common stock (the “Subsequent Securities,” and together with the Merger Shares and the Derivatives, the “Securities”) for purposes of raising the necessary capital to fund the Company’s ongoing operations, among other uses, including based on the capital needs of Beeline following the Merger in subsequent transactions. In order to ensure compliance with the rules of The Nasdaq Stock Market, LLC (“Nasdaq”), the Subsequent Securities issued in the subsequent transactions including issuance of the Derivatives are also subject to shareholder approval as outlined in detail in the accompanying Proxy Statement.

The Company has also entered into agreements contemplating an equity line of credit transaction with an institutional investor (the “Purchaser”) pursuant to which the Company agreed to issue and sell, and the Purchase agreed to purchase, up to $20 million of the Company’s common stock, subject to Nasdaq rules (such transaction, the “Equity Line of Credit” or the “ELOC”). The issuances of shares of common stock and related rights and terms under the Merger Share Issu