Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 42

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 42
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, certain events occurred which required an amendment to the Merger Agreement. First the Merger Agreement had a closing condition which required Eastside to raise $3.0 million from the sale of preferred stock with $2.0 million of that advanced to Beeline. As discussed elsewhere the pre-closing private placement did not occur.

Beginning in late August 2024, Beeline and its counsel began discussions with the investment banker who placed Beeline Debentures and the banker’s counsel since there were a number of provisions in the Debentures that prevented consummation of the Merger. Subsequent to September 4 th, the Debenture holders agreed to eliminate the conversion feature which needed to be reflected in an Amendment. The Merger Agreement also provided that Beeline had to have delivered audited financial statements as a condition of closing. Because of delays, Eastside agree to waive that requirement. Ultimately the audit was completed post-closing. Another key change was to eliminate the requirement that the Merger Shares be listed on Nasdaq as a condition of closing; instead the listing became a post-closing covenant. The Debt Exchange Agreement was amended during this period so the Amendment updated the reference in the Merger Agreement. This Proxy Statement is filed as a result. Finally, certain errors were corrected and immaterial changes were inserted in the amendment to the Merger Agreement.

Ultimately, various drafts of a side letter were exchanged and on October 4, 2024 the ten Debenture holders had entered into the side letter with Beeline. Key elements of the side letter were the conversion of the Debentures was terminated, the principal was increased from $3.3 million to $3.6 million, the term was extended until September 5, 2025, Beeline agreed to make monthly payments of the Debentures over a nine month period beginning January 5, 2025, and the Debenture holders waived various matters including negative covenants in the Debentures including one which would have prevented Beeline for entering into the Merger.

Subsequent to the September 4th execution of the Merger Agreement, certain events occurred which required an amendment to the Merger Agreement. First the Merger Agreement had a closing condition which required Eastside to raise $3 million from the sale of preferred stock with $2 million of that advanced to Beeline. As discussed elsewhere the pre-closing private placement did not occur. In addition, subsequent to September 4th, the Debenture holders agreed to eliminate