Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 43

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 43
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 the conversion feature which needed to be reflected in an Amendment. The Merger Agreement also provided that Beeline had to have delivered audited financial statements as a condition of closing. Because of delays, Eastside agree to waive that requirement. Ultimately the audit was completed post-closing. Another key change was to eliminate the requirement that the Merger Shares be listed on Nasdaq as a condition of closing; instead the listing became a post-closing covenant. This Proxy Statement is filed as a result. Finally, certain errors were corrected and immaterial changes were inserted in the amendment to the Merger Agreement.

Both the Merger and Debt Exchange Agreement closed on October 7, 2024.

Reasons for the Merger

The Board of Directors of Eastside has unanimously approved the Merger Agreement and the transactions outlined within it. In reaching its decision to approve the Merger Agreement and recommend that shareholders vote in favor of Proposal 1, the Board consulted with management, advisors, and legal counsel while considering several critical factors.

One significant factor was the state of the combined businesses of Spirits and Craft. By 2023, the Board determined that the combined company lacked the necessary capital resources to grow Craft’s digital printing operations while simultaneously restructuring the spirits business to achieve profitability. Additionally, senior management’s strategic review revealed that Craft would deplete the Company’s capital without generating adequate returns.

| 36 |

The two transactions—the debt-for-equity exchange effectively spinning off Craft to debt holders and the Beeline Merger —presented a viable opportunity to realign the Company’s capital, growth trajectory, and potential returns for stakeholders. The reasons and factors set forth below are determinations and evaluations made by the Board in consultation with management and certain consultants, and are not necessarily statements of fact or indicative of future events or performance. See “Cautionary Note Regarding Forward-Looking Statements” at page 29. The following criteria were instrumental in the Board’s decision:

Key Criteria Considered:

| 1. | Size       
 of Market: |

| ○ | Craft’s                                                                                   
 digital can printing operation was limited to one location in the Pacific Northwest, with 
 an estimated market size of $24 million.                                                  |

| ○ | Beeline’s                                                                                     
 national mortgage origination platform, including business-to-business revenue opportunities, 
 offers a market potential exceeding $1 billion.                                               |

| 2. | Required 
 Capital: |

| ○ | Craft’s                                                                                  
 growth plan required immediate capital investment in new machinery, working capital, and 
 marketing