Company: IPST
Filing Date: 2025-06-10
Form Type: DEF 14A
Source: 0001788230-25-000111
Chunk: 42

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-10
Form: DEF 14A
Chunk 42
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 |             $15,000,000 |
| $6.00                              |     |       |     |      2,500,000 |     | 18.71%                                                                                                                |     |             $15,000,000 |

| (1) |     | The purchase prices assume a discount to the market price of our shares, in accordance with the terms of the ELOC Purchase Agreement.                                                                                                                                                                                                                                                                                            |
| (2) |     | The denominator is based on 12,050,386 shares of our common stock outstanding as of May 29, 2025, adjusted to include the issuance of the number of ELOC Shares set forth in the adjacent column (net of 1,187,453 shares of common stock issued to date under the ELOC Purchase Agreement) that we would have issued to the Investor based on the applicable assumed purchase price per share for a total of 25,862,933 shares. |
| (3) |     | Represents the average VWAP of our common stock on January 22, 2025, as reported by Nasdaq of $1.16 per share, less a 5% discount.                                                                                                                                                                                                                                                                                               |
| (4) |     | Represents the minimum price for which the average price paid for all shares of common stock issued under the ELOC Purchase Agreement must be in order for the sales to be considered “at market” under applicable stock exchange rules and therefore not subject to the 19.99% issuance limit.                                                                                                                                  |

Why We Need Stockholder Approval

Our common stock is listed on The Nasdaq Capital Market and, as a result, we are subject to Nasdaq’s Listing Rules, including Nasdaq Listing Rule 5635. Below is an overview of the relevant provisions of Nasdaq Listing Rule 5635 as it relates to the issuance of common stock under the ELOC Share Issuance Proposal.

NASDAQ LISTING RULE 5635(D)(2)

Pursuant to Nasdaq Listing Rule 5635(d)(2), stockholder approval is required prior to the issuance of securities in connection with a transaction (or a series of related transactions) other than a public offering involving the sale, issuance or potential issuance of common stock (or securities convertible into or exercisable for common stock) equal to 20% or more of the common stock or 20% or more of the voting power outstanding before the issuance at a price that is less than the lower of (i) the Nasdaq Official Closing Price (as reflected on Nas