Company: BLNE
Filing Date: 2025-05-01
Form Type: 424B5
Source: 0001641172-25-008111
Chunk: 15

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-01
Form: 424B5
Chunk 15
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 increase in the shares underlying such securities, if we sell shares at a per share price below the applicable conversion or exercise price. For example, the Series G originally had a conversion price of $5.10, and the accompanying warrants issued to investors of Series G originally had an exercise price of $6.50. However, due to subsequent sales, these conversion and exercise prices were reduced to $1.67 and $1.12, respectively, with proportionate increases in the number of shares of common stock underlying such securities. As a result of this adjustment, the number of shares of common stock underlying the Series G and accompanying warrants increased from 1,516,915 shares to 6,320,010 shares. While the Company has since amended the Series G such that the provision will not apply to future sales under this offering, the warrants still contain price protection for future sales.

Therefore, with respect to future issuances, unless we receive waivers from these warrant holders, to the extent we issue shares at prices that are lower than $1.12, these exercise prices will automatically be reduced to the lowest sale price, and the underlying shares of common stock issuable upon exercises will be proportionately higher. This would cause additional dilution to our common stockholders. Additionally, because the Company may desire to avoid such an outcome, our ability to raise capital under the Offering Agreement may be reduced if the trading price of our common stock in the future is lower than the current $1.12 exercise prices.

We may not be able to access sufficient funds under the Offering Agreement as and when needed.

Our ability to sell shares through Ladenburg and obtain funds under the Offering Agreement is limited by the terms and conditions in the Offering Agreement, including certain restrictions on when we may sell shares and the quantity of such sales.

We elected to enter into the Offering Agreement as a means to access capital quickly as market conditions permit. The to which we can extent we rely on the Offering Agreement as a source of funding will depend on a number of factors including, the prevailing market price and trading volume of our common stock and the extent to which we are able to secure working capital from other sources in the future. We cannot assure you we will receive any proceeds from the at-the-market offering, or that proceeds we do receive will be sufficient to repay existing debt obligations or fund our working capital needs. For example, the Company has $1,786,333 of indebtedness under senior secured notes issued in November 2024 which as extended become due on May 14,