Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 39

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 39
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’s counsel. The following week, Eastside director and lender Robert Grammen, counsel, and representatives of other lenders met to discuss creditor support for a broader transaction, including a debt-for-equity exchange and the potential acquisition of Beeline. These discussions addressed complications related to aligning creditor interests and achieving a debt-free balance sheet for the Beeline transaction.

Throughout May, senior leadership and creditors reviewed multiple variations of a proposed plan that would achieve the highest valuation for Eastside’s assets while maximizing the likelihood of success for the Beeline Merger.

Over the course of May 20–22, 2024,
the Letter of Intent (LOI) was reviewed by Eastside’s counsel and a representative of the creditor group. Our Chief Executive
Officer emphasized the importance of early alignment with key creditors before completing any negotiation with Beeline. The
representative’s feedback and interest in the transaction were encouraging, and the Company finalized edits to the term sheet
for the Beeline LOI.

| 34 |

On May 28–29, 2024, Eastside hosted calls with Board members to discuss the Beeline Merger opportunity. These discussions included reviewing initial due diligence materials and identifying areas requiring additional review. During the same period, our Chief Executive Officer held regular phone calls with the creditor group and other preferred stock stakeholders to address the requirements for achieving a successful transaction, with or without the acquisition of Beeline. The creditor group understood that eliminating existing debt was essential to complying with Nasdaq’s shareholders’ equity requirement and avoiding delisting.

On May 29, 2024, Eastside executed a non-binding LOI with its creditors and Beeline. The key elements of the LOI included the elimination of approximately $10.0 million of secured and unsecured debt in exchange for preferred stock, the sale of Craft, and the sale of 750 bottles of whiskey to Craft. Additionally, the acquisition of Beeline would result in Beeline shareholders owning 87.5% of Eastside upon completion of the transaction. The LOI included several contingencies, including raising $2.0 million (of which $1.5 million would be injected into Beeline), resolving certain pending claims and litigation, and meeting the Nasdaq shareholders’ equity requirement by September 30, 2024, a week before the October 7th deadline.

Meanwhile, on June 5, 2024, Beeline arranged to raise $3.3 million through the sale of 43.3 million convertible debentures (the “