Company: BLNE
Filing Date: 2025-02-05
Form Type: DEF 14A
Source: 0001493152-25-005006
Chunk: 34

Company: Beeline Holdings, Inc.
Filing Date: 2025-02-05
Form: DEF 14A
Chunk 34
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 pending an increase to our authorized common stock and shareholder approval of Proposal 1; and               |

| ● | 3,878,847                                                                                   
 shares of common stock underlying equity awards we are obligated to issue Beeline option    
 holders in connection with the Merger, which awards are expected to be made after we adopt  
 a 2025 Equity Incentive Plan. We plan to adopt a 2025 Equity Incentive Plan later this year 
 and seek the necessary shareholder approval at our 2025 annual shareholders meeting.        |

In addition, certain of these securities are subject to adjustment provisions which could result in an increase in the number of shares of common stock issuable upon conversion or exercise thereof and a decrease if we effect a reverse stock split. If we engage in future transactions which require us to issue additional shares, we will seek shareholder approval at a later date as and to the extent required by Nasdaq rules.

Consequences if the Merger Share Issuance Proposal is Approved

Approval and completion of the Merger Share Issuance will result in substantial dilution to Eastside’s shareholders. The estimated number of shares of common stock issuable in connection with the Merger Share Issuances is 90,632,880 shares. See also disclosure under “Principal Shareholders” at page 51 for further information on the estimated and potential impact, including dilution to existing security holders, of issuances in connection with Proposals 1 and 2, including the Merger and the subsequent transactions.

Consequences if Merger Share Issuance Proposal is not Approved

If the Merger Share Issuance Proposal (Proposal 1) is not approved, the holders and recipients of the Merger Shares and subsequent transactions will not be able to convert, exercise or vote their securities by virtue of the Exchange Cap. At that point, Eastside’s Board will be required to make a decision as to whether it wants to remain listed on Nasdaq or have its common stock traded on a market operated by the OTC Markets Group, Inc., and if so, consider whether to permit the Merger Shares and Subsequent Securities to convert and be exercised. Trading on OTC Markets Group, Inc. is generally less liquid and in recent years it has been much more difficult to raise money unless the common stock is listed an exchange operated by The Nasdaq Stock Market or the New York Stock Exchange. In addition, the National Securities Markets Improvement Act of 1995 offers certain relief only to such exchange listed companies.

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