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

Company: Beeline Holdings, Inc.
Filing Date: 2025-02-05
Form: DEF 14A
Chunk 25
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 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 or exercise of the securities, the estimated amounts as the Share Issuances does not give effect to such issuances since we do not expect that we will engage in lower price issuances which could trigger the anti-dilution features. As of the date of this Proxy Statement, the securities in Proposal 1 could result in the issuance of a total of 90,632,880 underlying shares of common stock, without giving effect to beneficial ownership limitations or potential adjustments thereof. Additionally, the Equity Line of Credit may result in the issuance of up to 39,215,686 shares of common stock using the assumed floor of $0.51 per share. However, we may need to obtain shareholder approval to increase our authorized common stock to permit us to use the full ELOC. Based on the foregoing, the estimated number of shares being approved for issuance under Proposals 1 and 2 is 129,848,567 shares.

After giving effect to these issuances under Proposals 1 and 2 (and assuming we have the authorized capital), this amount would reflect a total of approximately 94% of the Company’s outstanding common stock issued or issuable to the holders of the Securities, compared to approximately 2.7% and 3.4% of the Company’s outstanding common stock held by Eastside shareholders as of October 7, 2024, the closing date of the Merger and the Record Date, respectively. As such, Eastside shareholders will experience substantial dilution if Proposals 1 and 2, or either of them, are approved.

Approval of Proposal 2 gives the Company the opportunity to raise capital in the future to support its operations assuming the shares of common stock issuable under the ELOC are subject to a registration statement we will later file with the SEC and the SEC declares such registration statement effective.

In addition, effective immediately upon approval of Proposal 1 at the Special Meeting, the holders of the Series F, F-1 and G, representing a total of approximately 76 million votes as of the Record Date, will become entitled to vote, and those votes will be counted towards the other Proposals being brought at the Special Meeting and at any future meetings of the shareholders, subject to any applicable beneficial ownership limitations.

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