Fintech Secures NASDAQ Listing After Strategic Merger

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Beeline Holdings Inc. (BLNE:NASDAQ) announced its application for a new Nasdaq listing for its newly merged company has been officially accepted.

The change follows Eastside Distilling Inc.'s merger with Beeline Financial Holdings Inc. On March 7, shareholders approved the change of control of the company and a change of name to Beeline Holdings. The changes took effect on March 12.

"This milestone marks just the beginning of an exciting new chapter for Beeline," said Nick Liuzza, the newly appointed chief executive officer of Beeline. "With strong momentum behind our technology and business development initiatives, we look forward to sharing more updates in the near future as we continue to drive forward innovation in the mortgage space."

To meet the minimum price requirement for its new Nasdaq listing, Beeline said it will implement a 1-for-10 reverse stock split of its common stock, effective March 12. Following the split, every 10 shares of issued and outstanding stock will be converted into one share. The company's common stock will continue trading on Nasdaq under the symbol "BLNE" with a new CUSIP number assigned post-split.

With its proprietary technology and AI, combined with its "loan guide" assistance, Beeline provides homeowners and property investors a shorter, faster and easier home loan application process. Applicants can do all the steps online directly on their mobile devices and get "approvals more reliably than traditional pre-approvals, sometimes in as little as 15 minutes, and a rate lock in one session."

Beeline offers a variety of options, including refinancing, to consumers through its digital platform. It has built its premise on making homeownership more accessible to a wider, more diverse market, making it an attractive prospect if mortgage rates continue to fall.

A Leader in Digital Mortgage Services

Last October, Eastside Distilling, a craft spirits producer, acquired Beeline in a strategic move to create additional value for investors, customers, and partners.

"This represents a transformative step for our company and our shareholders," Eastside Distilling CEO Geoffrey Gwin said at the time.

According to Technical Analyst Clive Maund, Beeline "should have a bright future."

The strategic partnership positions the new company as a leader in the digital mortgage services space while continuing to grow its legacy craft spirits business.

U.S.-based Eastside Distilling manufactures, acquires, blends, bottles, imports, markets, and sells a wide variety of alcoholic beverages under recognized brands, including Azuñia Tequila, HueHue Coffee Rum, and Burnside Whiskey.

Beeline Loans was founded in 2019 to make home-buying fun rather than grueling and drawn out, according to its website. "We remove the traditional loan BS and shorten the path to your financial happy place," it reads.

Analyst: New Bull Market Coming

According to Technical Analyst Clive Maund on February 27, Beeline "should have a bright future" since there will still be mortgage transactions, "even in a bleak economic environment or in a housing downturn."

The company recently "closed a US$5 million funding, with over half of the capital coming directly from the CEO of the company, which is a vote of confidence if ever there was one," Maund wrote on February 27. "This is why a big bullish candle appeared on the stock chart on massive volume on the 19th. This news followed the news out a week earlier" of Beeline's partnership with RedAwning.

A run of "bullish long-tailed candles" and two "dragonfly dojis" on Beeline's recent chart show the lows of a small double bottom, Maund said.

"The second of these was a really big one on huge volume, which appeared following the news of the completion of the funding, and it clearly has bullish implications," Maund said. "The price has consolidated over the past couple of trading days and is expected to advance from here."

Maund said Beeline Holdings was at a very good entry point "since it doesn't look like it will be long before it breaks out of the top of this base into a new bull market."

The Catalyst: Mortgage Rate Lowest Since October

Months after the Fed's interest rate cut last September, the average 30-year fixed mortgage rate dropped to 6.63% this week, the lowest level seen since October, a decline most experts attribute to a lower 10-year treasury yield, according to a report by Caitlin Cahalan on Monday for TheStreet.

"While home buyers and sellers have been eagerly awaiting lower mortgage rates, if they come at the cost of a recession, the housing market still may not recover as soon as hoped," she wrote.

Rising inflation, uncertainty, and high treasury yields had been putting upward pressure on rates, which peaked at over 7% in January. Although mortgage rates began receding recently, Americans remain wary of the housing market.

"Many believe that homeownership has become increasingly out of reach, dampening homebuyer demand and market activity," Cahalan wrote. "And though lower mortgage rates are a welcomed relief, the shift may stem from worrying economic factors."

The global fintech lending industry is forecasted to expand at a compound annual growth rate (CAGR) of 27.4% by 2030, according to Allied Analytics. Accordingly, it is projected to generate US$4.957 trillion by 2030, up from US$449.89 billion in 2020. In the first year of the forecast period, the online segment accounted for nearly four-fifths, the highest share, of this market, and it is expected to maintain its lead position through 2030.

"This is due to [a] hassle-free lending process, customization of small-ticket loans, and mitigation of risks associated with unsecured lending," the report noted.

The standard global online mortgage lending market is expected to grow at a 10% CAGR between 2023 and 2030, hitting about US$25 billion at the end of this decade, reported Fairfield, a market research company.

"The growth of the mortgage lending sector is anticipated to be fueled by rising technological advancements in underwriting automation and the application of machine learning in lending markets," the report said.