Company: BLNE
Filing Date: 2025-02-05
Form Type: DEF 14A
Source: 0001493152-25-005006
Chunk: 41

Company: Beeline Holdings, Inc.
Filing Date: 2025-02-05
Form: DEF 14A
Chunk 41
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 Merger.

| 35 |

In mid-July 2024, a call was held with Eastside’s Chief Executive Officer, its counsel, Beeline’s Chief Executive Officer, and Beeline’s Chief Financial Officer. Beeline’s counsel advised that a new SEC rule did not permit the sale of Spirits. As a result, the structure of the proposed transaction changed, and Eastside agreed to retain 53% ownership and control of Spirits. This ownership was finalized through transactions that occurred on October 7, 2024 and early November 2024.

August 13–14, 2024, Eastside’s Board met to evaluate the Merger with Beeline, considering stakeholder outcomes and the need for growth. The Audit Committee met informally over the following week to discuss the pro forma business, balance sheet, and deal economics. The Audit Committee specifically addressed the fairness of the transaction, incorporating evidence from negotiations with multiple parties, including input from the investment bank, external parties, and senior leadership. As cash needs and forecasts were finalized, the LOI structure evolved. On August 28, 2024, the Board met again to review the updated business combination structure and rationale. The Board also discussed financial pressures in both businesses, particularly Craft, the likelihood of asset sales, and the benefits of merging with Beeline.

Eastside’s and Beeline’s counsel began negotiating the definitive Merger Agreement, with the first draft sent on July 19, 2024. By September 3, 2024, the parties reached a consensus, and the Merger Agreement was signed on September 4, 2024. Eastside’s Board had approved the Merger in late August 2024.

Between mid-July and the signing of the Merger Agreement, both legal teams exchanged numerous drafts, discussing capitalization, post-Merger capitalization, Nasdaq compliance, and reducing the quorum requirement to one-third of the voting power. Eastside amended its Bylaws to meet this requirement. In September, Eastside worked to secure Voting Agreements from key shareholders, including debt holders, to facilitate shareholder approval of the Merger Shares.

Due to the importance of maintaining the Nasdaq listing, Beeline’s counsel requested that Eastside retain a Nasdaq listing consultant. From July through September 2024, multiple consultations occurred to seek advice on the Merger and its Nasdaq implications.

On September 6, 2024, Eastside issued a press release announcing the signing of the Merger Agreement with Beeline.