Company: BLNE
Filing Date: 2025-02-05
Form Type: DEF 14A
Source: 0001493152-25-005006
Chunk: 37

Company: Beeline Holdings, Inc.
Filing Date: 2025-02-05
Form: DEF 14A
Chunk 37
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 potential separation of the spirits and canning businesses, as digital can printing customer wins had exceeded expectations. Of the two businesses, senior leadership believed the spirits segment could be monetized more readily, while Craft’s digital printing operations could form the foundation of the ongoing Company.

On November 22, 2022, the Eastside Board unanimously voted to explore the sale of the spirits business and engaged an investment banker to assist.

Throughout 2023, Eastside engaged with multiple spirits companies and other parties about potential transactions, including asset sales or Mergers. From these conversations, it became clear that the valuations of our consumer beverage brands had declined from the Board’s earlier expectations.

During 2023 and early 2024, senior leadership frequently met with members of the Audit Committee, typically on a weekly basis, to discuss operations and developments around a potential transaction. During early March 2024, it was determined to pursue any reasonable opportunity that met the Board’s criteria for success, which included delivering a substantial return to all stakeholders.

On March 3, 2024, Mr. Gwin was contacted by a third party who introduced Beeline to Eastside. Initial discussions primarily revolved around how Beeline, a mortgage originator, could potentially align with a consumer products company.

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Around the same time, the Company learned that
three key stakeholders who had participated in a debt-for-equity exchange the prior year were interested in a similar transaction. However,
their interest was primarily in the Craft digital printing operation.

In the first week of March 2024, Mr. Gwin held discussions with two of these stakeholders and key creditors about potentially selling Craft while retaining the spirits business within the public company. During this time, Mr. Gwin was also preparing a strategic plan to address the potential of failing to meet Nasdaq’s listing requirements. A Nasdaq deficiency letter was received on April 8, 2024.

On March 22, 2024, management reported progress on the “2024 Way Forward Plan” to the Board, aiming to establish a self-funding plan for all of Eastside’s businesses. Management shared this plan with major creditors who had participated in the 2023 debt-for-equity exchange. It was widely believed by both the Board and key stakeholders that the Company should remain a Nasdaq-listed entity. Conversations then began that led to a committed term sheet submitted to Nasdaq on May 23, 2024, detailing the “Way Forward Plan,” which incorporated a substantial exchange of