Company: BLNE
Filing Date: 2025-02-05
Form Type: DEF 14A
Source: 0001493152-25-005006
Chunk: 3

Company: Beeline Holdings, Inc.
Filing Date: 2025-02-05
Form: DEF 14A
Chunk 3
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 in the enclosed Proxy Statement being mailed to Eastside’s shareholders of record in connection with the Special Meeting.

As required by the Nasdaq rules, the Merger and the Merger Share Issuances involve a change of control which means under Nasdaq rules, a new listing application must be submitted to Nasdaq even though our common stock is currently listed on Nasdaq. Accordingly, we are submitting a new listing application to Nasdaq to reflect the new status of the combined company for Nasdaq purposes resulting therefrom. If that application is approved and the Merger Share Issuance Proposal is approved, Eastside common stock will continue to trade on Nasdaq under the symbol “BLNE.” On January 28, 2025, the closing price per share of Eastside common stock as reported by Nasdaq was $0.83. We urge you to obtain current market information for Eastside common stock. Based upon the shares of our common stock outstanding on October 7, 2024 when the Merger closed, we were limited by Nasdaq rules to only issuing 745,752 shares which represented 19.99% of the Company’s common stock as of that date without getting shareholder approval. Proposal 1 not only seeks approval of the shares of common stock underlying the Merger Shares and the Derivatives pursuant to the Merger; in addition, we are seeking approval of our shareholders to also approve the shares of common stock issuable upon conversion of preferred stock and exercise of warrants we issued subsequent after October 7 th. This is covered under Proposal 1.

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Proposal 2 relates to the ELOC Share issuance. While it is difficult to predict the total number of shares of common stock we may issue under the ELOC, using the hypothetical purchase price of $0.51 as the lowest price at which we will issue shares of common stock to the Purchaser, we estimate that we may issue as many as 39,215,686 shares. We use the $0.51 price since any issuances below that price will permit holders of our Series G Convertible Preferred Stock (the “Series G”) to get more shares under anti-dilution protections.

We will hold the Special Meeting of our shareholders to vote on these matters. The Board also asks that you vote to change our corporate name to Beeline Holdings, Inc., ratify the appointment of Salberg & Company, P.A., the Company’s independent registered public accounting firm, and approve a proposal to approve an adjournment of the Special Meeting