Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 58

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 58
---
 proceed with the Name Change in accordance with Nasdaq rules and Section NRS 78.390(8) of Chapter 78 of the Nevada Revised Statutes and the Company’s Articles of Incorporation.

<div align='center'>THE BOARD UNANIMOUSLY RECOMMENDS THAT YOU VOTE “FOR” THE MERGER SHARE ISSUANCE PROPOSAL

PROPOSAL 2: THE EQUITY LINE OF CREDIT PROPOSAL</div>

At the Special Meeting, shareholders will be asked to approve the Equity Line of Credit Proposal, which provides for the approval of the issuance and sale of common stock by the Company in excess of the Exchange Cap of 19.99% of the Company’s outstanding common stock as required by Nasdaq rules 5635(b), which rule is described under “Proposal 1 – The Merger Share Issuance Proposal – Nasdaq Rules.”

ELOC Agreement

The Company and C/M entered into the ELOC Agreement on December 31, 2024. The ELOC Agreement provides that, upon the terms and subject to the conditions set forth in the ELOC Agreement, the Company may issue and sell to C/M, and C/M shall purchase from the Company, up to $20 million (reduced from the original amount of $35 million), subject to the Exchange Cap of 19.99% of the outstanding common stock prior to the Company obtaining shareholder approval. Copies of the ELOC Agreement and a side letter are annexed as Annex G. We issued C/M 573,925 shares of Series G (representing commitment shares valued at 1.5% of the maximum ELOC amount). Assuming we have authorized common stock and receive shareholder approval of Proposal 2, we will be required to register the transaction through which we issue underlying common stock in order to permit us to raise capital under the ELOC Agreement. Our ability to raise a material amount under the ELOC Agreement will depend upon the future liquidity of our common stock.

The ELOC Agreement essentially gives us the right to put (or offer to sell) common stock to C/M as described below. Specifically, the purchase and sale terms provided for by the ELOC Agreement are as follows:

| (i) | Fixed                                                                                          
 Purchase. On any business day where the closing sale price of the common stock is equal        
 to or greater than $0.40, the Company has the right to direct C/M to purchase shares of common 
 stock at a purchase price equal to 95% of the lower of