Company: BLNE
Filing Date: 2025-09-12
Form Type: DRS
Source: 0001493152-25-013186
Chunk: 11

Company: Beeline Holdings, Inc.
Filing Date: 2025-09-12
Form: DRS
Chunk 11
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 Agreement will fluctuate based on the price of our common stock and will be at a discount to the market prices of the common stock. Depending on market liquidity at the time, sales of such shares may cause the trading price of our common stock to fall. Additionally, the amount that we may sell to C/M will be limited to the daily trading dollar volume on the day of, or day before, the applicable sale which we refer to as “put.” If the trading volume and/or price of our common stock is low, our ability to raise capital under the Purchase Agreement will be limited and/or it will take an extensive time to raise capital, which could prove harmful to us and our ability to meet our working capital and operational needs through use of the Purchase Agreement. We generally have the right to control the timing and amount of any sales of our shares to C/M, subject to the conditions set forth in the Purchase Agreement.

C/M may ultimately purchase all, some or none of the shares of our common stock that may be sold pursuant to the Purchase Agreement in connection with our rights to direct C/M’s purchases at our discretion and, after it has acquired shares, C/M may sell all, some or none of those shares. Therefore, sales to C/M by us could result in substantial dilution to the interests of other holders of our common stock. Additionally, the sale of a substantial number of shares of our common stock to C/M, or the anticipation of such sales, could make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwise wish to effect sales.

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Further, certain of our outstanding derivatives securities, including convertible preferred stock and warrants, contain anti-dilution price protection provisions which provide for adjustments to conversion and exercise prices, and an increase in the shares underlying such securities, if we sell shares at a per share price below the applicable conversion or exercise price. Therefore, if we issue shares at prices that are lower than these conversion and exercise prices, these conversion prices will automatically be lowered to the new lower sale price. This would cause additional dilution to our common stockholders and result in our receiving less cash upon exercise of warrants. Additionally, because the Company hopes to avoid such an outcome, our ability to raise capital under the ELOC will be limited to the extent our common stock trades near or below these prices.

By virtue of the terms of the Purchase Agreement, it is not possible to predict the number of shares we will sell nor the prices