Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 22

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 22
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.0001 per share. The Pre -FundedWarrants will be exercisable in cash or by means of a cashless exercise and will not expire until the date the Pre -FundedWarrants are fully exercised. The exercise price of the Pre -FundedWarrants is subject to adjustment for stock dividends, stock splits, recapitalizations and the like. A holder (together with its affiliates) may not 9 exercise any portion of a Pre -FundedWarrant to the extent that the holder would own more than 4.99% of our outstanding common stock immediately after exercise (the “Beneficial Ownership Limitation”), except that upon at least 61 days’ prior notice from the holder to us, the holder may increase the amount of ownership of outstanding stock after exercising the holder’s Pre -FundedWarrants up to 19.99% of the number of shares of common stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Pre -FundedWarrants. Following approval of the offering of Pre -FundedWarrants by our stockholders, a holder of Pre -FundedWarrants may request the permanent suspension of the Beneficial Ownership Limitation from such holder’s Pre -FundedWarrants. We received net cash proceeds of approximately $95 million from the offering of Pre -FundedWarrants and used (i) approximately $80.0 million of such net proceeds to purchase $IP tokens from Story Foundation at a price per $IP token of $3.40, and (ii) approximately $7 million of such net proceeds for the repayment of indebtedness. We intend to use the remaining net proceeds to address trade payables, for working capital and general corporate purposes. In anticipation of the offering of Pre -FundedWarrants, between June 19, 2025 and August 10, 2025, we entered into advisory and implementation agreements (the “Advisory Agreements”) with Open World, Inc. and certain of its management and affiliates, S.Y. Lee, the founder and chief executive officer of PIP Labs, the original creator of Story, and certain other advisors to our company (collectively, the “Advisors”), pursuant to which the Advisors will provide to us certain consulting, strategy and business development services related to our establishment of a treasury function in certain non -securitycryptocurrencies, including $IP tokens. Pursuant to the Advisory Agreements, we will issue to certain Advisors,