Company: BLNE
Filing Date: 2025-01-08
Form Type: S-1/A
Source: 0001493152-25-001415
Chunk: 251

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-08
Form: S-1/A
Chunk 251
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deemed to be new debt, a modification of existing debt, or an extinguishment of existing debt. The Company evaluated the Amendments for
debt modification and concluded that the debt qualified for debt extinguishment. The Company determined the transaction was considered
a debt extinguishment because the removal of the conversion terms was substantial. Upon extinguishment, the Company had approximately
$1,000,000 of unamortized debt discount recorded which will be written off to loss on debt extinguishment. Additionally, the Company
will expense the $300,000 increase in principal balance and record a loss on debt extinguishment.

Sale of Common Stock

Subsequent to September 30, 2024 through the date of this report, Beeline sold 327,880shares of common stock for proceeds of $ 491,761, or $ 1.50per share.

Merger Agreement

On September 4, 2024, the Company entered into the Merger Agreement with the Merger Sub and Eastside Distilling, Inc. (“Eastside”). On October 7, 2024, the parties executed Amendment No. 1 to the Merger Agreement.

On October 7, 2024, immediately after the closing under the Debt Agreement, a closing was held pursuant to the Merger Agreement (the “Merger Closing”). Beeline merged into Merger Sub and became a wholly-owned subsidiary of Eastside, with the name of the surviving subsidiary being changed to Beeline Financial Holdings, Inc. In the Merger, the shareholders of Beeline gained the right to receive a total of 69,482,229shares of Eastside’s Series F Preferred Stock and a total of 517,771shares of Eastside’s Series F-1 Preferred Stock. In addition, each option to purchase shares of Beeline common stock outstanding at the time of the Merger was converted into an option to purchase shares of Eastside’s common stock measured by the same ratio.

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