Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 18

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 18
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 marketing efforts to expand our TBN growth, the addition of key finance staff to ameliorate deficiencies identified by our auditors, the repayment of debt and other obligations, and general working capital. On January 23, 2025, we issued to the Investor the Commitment Warrant to purchase up to 67,162 shares of common stock for a purchase price of $0.001 per share, as consideration for its entry into the ELOC Purchase Agreement. The Investor paid no cash consideration for the Commitment Warrant. Accordingly, any proceeds received by the Investor upon its exercise of the Commitment Warrant and subsequent sale of such Commitment Shares would be profit. As of the date of this prospectus, except for the shares of our Series B Convertible Preferred Stock (“Series B Preferred Stock”) discussed below and its investment in our initial public offering in November 2024, no other shares have been issued to the Investor. Pursuant to the ELOC Purchase Agreement, we have agreed to sell and the Investor has agreed to purchase up to $1,000,000 of our Series B Preferred Stock, of which $500,000 was purchased and sold in connection with the execution and delivery of the ELOC Purchase Agreement and $500,000 will be purchased and sold within three trading days following the date the registration statement of which this prospectus forms a part is declared effective by the SEC. Each share of Series B Preferred Stock will have a purchase price of $10.00 per share with a stated value of $12.00 per share and will pay dividends at the rate of 15% per annum of the stated value (or $1.80 per share). Any time following the six month anniversary of the day on which such Series B Preferred Stock is sold, such Series B Preferred Stock will be convertible by the holder 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-applicable conversion price, provided that we and the Investor have entered into a letter agreement dated January 23, 2025 under which the Investor has agreed that it will not convert shares of Series B Preferred Stock for a number of shares of common stock that would give it and its affiliates beneficial ownership of an amount of common stock greater than 1% of the total outstanding common stock after giving effect to such conversion. The conversion price of the Series B Preferred