Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 41

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 41
---
. 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 and early November.

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.

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, 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. The press release highlighted the Merger’s strategic value and the reduction of debt through the issuance of preferred stock, the sale of Craft, and the retention of 53% of Spirits. The release also noted that the transaction was subject to shareholder approval, Nasdaq compliance, and other customary closing conditions.

Subsequent to the September 4 thexecution of the Merger Agreement