Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 35

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 35
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 whiskey, vodka, rum and tequila, under recognized brands in 30 U.S. states. We sell our products on a wholesale basis to distributors through open states, and brokers in control states. We own 53% of Spirits.

In the Merger on October 7, 2024, Beeline became our second subsidiary. Beeline is a fintech mortgage lender and title provider aimed at transforming the home loan process into a shorter, easier path than conventional mortgage lending for millions of Americans seeking a digital experience. Beeline has built a proprietary mortgage platform leveraging advanced technical tools with sophisticated language learning models and combining an appropriate amount of human interaction to create a better outcome for mortgage borrowers. Beeline was founded in 2019. with principal offices located in Providence, Rhode Island. An Australian subsidiary has offices in Burleigh Heads, Australia. Beeline also has executive office suites in three locations in the United States.

For more information, see “Business” beginning on page 65 of this Proxy Statement.

Background of the Merger

In our ongoing efforts to strengthen the business and enhance shareholder value, the Board, in collaboration with senior management and occasionally outside advisors, regularly reviews Eastside’s business plans and strategic options. These include organic growth and potential strategic transactions such as Mergers and acquisitions.

Company Challenges and Strategic Shifts

An attempt by Spirits to establish a national footprint had failed by 2019. The Company faced significant challenges, including strained resources due to distribution partners monopolizing market access and the constraints of the three-tier spirits distribution system. This system, established after the repeal of Prohibition, consists of three distinct levels:

| 1. | Producers:                                                                                
 Manufacturers such as brewers, distillers, and winemakers who create alcoholic beverages. |

| 2. | Distributors:                                                                                                         
 Wholesalers who purchase products from producers and sell them to retailers, ensuring proper taxation and regulation. |

| 3. | Retailers:                                                                                                
 Businesses like bars, restaurants, and liquor stores that sell alcoholic beverages directly to consumers. |

The system is designed to prevent monopolies
and ensure regulatory compliance, product safety, and tax collection. Each tier operates independently, and businesses are generally
prohibited from owning operations in more than one tier. However, in recent years, distributors have merged, creating large national
operations that control access to retailers and new markets. The Company’s pursuit of a large national footprint was hindered by these
challenges.

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In January 2019