Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 86

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 86
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 a de-listing, we would take actions to try to restore our
compliance with the Nasdaq marketplace rules, but our common stock may not be listed again, and such actions may not stabilize the market
price or improve the liquidity of our common stock, prevent our common stock from dropping below the Nasdaq minimum bid price requirement
or prevent future non-compliance with the Nasdaq marketplace rules.

If our shares become subject to the penny stock rules, it would become more difficult to trade our shares.

The SEC has adopted rules that regulate broker-dealer practices
in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00, other than
securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation systems, provided
that current price and volume information with respect to transactions in such securities is provided by the exchange or system. If we
do not obtain or retain a listing on Nasdaq and if the price of our common stock is less than $5.00, our common stock will be deemed a
penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules,
to deliver a standardized risk disclosure document containing specified information. In addition, the penny stock rules require that before
effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer must make a special written determination
that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser’s written acknowledgment of the
receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks; and (iii) a signed
and dated copy of a written suitability statement. These disclosure requirements may reduce the trading activity in the secondary market
for our common stock, so stockholders may have difficulty selling their shares.

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We could use shares of our common stock to acquire a position in, or all of, another company or brand, which could result in dilution for shareholders of record at that time.

In the future we could use shares of our common
stock as a form of currency to invest in or acquire other companies or brands. The issuance of these shares would be dilutive to other
stockholders of our company. Our management and our board of directors will make these decisions and stockholders may have little to no
view or say in these transactions. As such, the issuance of such shares creating dilution