Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 120

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 120
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 of 15% per annum of the stated value (or $1.80 per share), and was convertible by the holder at any time following the 180 thday following the date of issuance into a number of shares of common stock determined by dividing (a) an amount equal to 110% of the sum of (i) the stated value plus (ii) the amount of all accrued and unpaid dividends, by (b) the then -applicableconversion price. The Series B Preferred Stock was also mandatorily convertible on such basis on the third anniversary of the initial date of issuance of the Series B Preferred Stock. From July to October3, 2025, two investors converted an aggregate of 126,981shares of Series B Preferred Stock into 3,822,769 shares of common stock. As discussed below, in connection with the closing of our offering of our Pre -FundedWarrants, we exchanged an aggregate of 629,873shares of Series B Preferred Stock for 894,856shares of common stock and warrants to purchase an aggregate of 17,002,480shares of common stock. As of the date hereof, no shares of Series B Preferred Stock are currently outstanding. 66 In connection with the closing of our offering of Pre -FundedWarrants, we entered into exchange agreements with all but two holders of our Series B Preferred Stock pursuant to which we exchanged 629,873shares of Series B Preferred Stock that were convertible into 17,897,336shares of common stock for (i) 894,856shares of common stock; (ii) warrants with an exercise price of $0.01 per share that are exercisable to purchase an aggregate of 8,948,676shares of common stock at the earlier of (a) the date on which the public market price of our common stock closes at $1.50 per share or higher during a regular trading day or (b) on the three -monthanniversary of the warrant issuance date; and (iii) warrants with an exercise price of $0.01 per share that are exercisable to purchase an aggregate of 8,053,804shares of common stock at the earlier of (a) the date on which the public market price of our common stock closes at $2.00 per share or higher during a regular trading day or (b) on the six -monthanniversary of the warrant issuance date. The former holders of our Series B Preferred Stock who exchanged such shares for shares of common stock and warrants