Company: BLNE
Filing Date: 2025-02-05
Form Type: DEF 14A
Source: 0001493152-25-005006
Chunk: 50

Company: Beeline Holdings, Inc.
Filing Date: 2025-02-05
Form: DEF 14A
Chunk 50
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 shareholders of Eastside entered into voting agreements pursuant to which such persons agreed to vote in favor of the Merger Share Issuance. The voting power held by these persons who executed a voting agreement combines for a total of approximately 1,060,790 votes, representing approximately 22.4% of the outstanding voting power. These amounts may be lower to the extent any of the counterparties to the Voting Agreements have since sold or transferred any of their shares.

Subsequent Transactions and Subsequent Securities

We engaged in the following financings and transactions which occurred after the Merger:

November 2024 PIPE – Notes and Warrants

On November 14, 2024, the Company sold $1,938,000 in aggregate principal amount of Senior Secured Notes (the “Notes”) and Pre-Funded Warrants (the “Note Warrants”) to purchase a total of 363,602 shares of common stock for total gross proceeds of $1,615,000 in connection with a private placement offering. The Notes and Note Warrants were sold pursuant to a Securities Purchase Agreement with accredited investors. The Notes are not convertible.

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The Note Warrants have a term of five years from issuance and are exercisable at an exercise price of $0.50 per share (of which $0.499 per share was pre-funded by each investor). The Note Warrants will be exercisable beginning upon shareholder approval of the issuance of the common stock issuable upon exercise of such Note Warrants in accordance with the rules of Nasdaq and an increase in the authorized common stock of the Company. We have a special shareholders meeting scheduled for January 21, 2025 at which we are asking our shareholders to approve an increase in authorized common stock to 100 million. If at any time after exercising the Note Warrants, there is no effective registration statement registering, or the prospectus contained therein is not available for use, then the Note Warrants may also be exercised, in whole or in part, by means of a “cashless exercise.”

The Company is required to convene a meeting of its shareholders within 150 days of the closing date and solicit proxies in favor of resolutions increasing the number of authorized shares of common stock and approving the issuance of the common stock upon exercise of the Note Warrants.

The Notes have a maturity date of 120 days from issuance, were issued with a 20% original issue discount and do not bear interest unless and until one or more of the customary events of default set forth therein occurs