Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 244

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 244
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 by the Company regarding the use of proceeds from any sale of such ELOC Shares. The net proceeds from any sales under the Facility will depend on the frequency with, and prices at, which the ELOC Shares are sold to the Investor.

Under the terms of the ELOC Purchase Agreement, within five (5) business days of the close of execution of the documents for this offering the Company will issue prepaid warrants exercisable into $ 75,000worth of common stock priced at the VWAP per share for the trading day preceding the date such documents are executed (the “Commitment Warrants”). The Commitment Warrants shall have an exercise price of $ 0.001per share and shall not be exercisable if such exercise into common stock, when combined with other common stock owned by Investor, would cause its ownership to exceed 4.99% of the Company’s overall outstanding common stock. Upon exercise of the Commitment Warrants the resulting shares shall be called “Commitment Shares”. The Investor agreed not to sell more of such Commitment Shares in any one trading day than is equal to seven percent ( 7%) of the total trading volume on the day such Commitment Shares are sold. Such warrants were issued to the Investor as consideration for its entry into the ELOC Purchase Agreement (the “Commitment Warrants”). In February 2025, the Company issued 67,162Commitment Warrants to the ELOC Investor. In February 2025, the Investor exercised the Commitment Warrants for $ 67.

Pursuant to the ELOC Purchase Agreement, the Investor also agreed to purchase $ 1,000,000of the Company’s Series B Preferred Stock, of which $ 500,000will be purchased, and the Company will deliver such Series B Preferred Shares, within twenty four ( 24) hours after the ELOC Registration Statement is filed with the SEC. The second tranche of $ 500,000will be purchased, and the Company will deliver such Series B Preferred shares, within threetrading days following the date the ELOC Registration Statement is declared effective by the SEC. Each share of Series B Preferred Stock will have a purchase price of $ 10.00per share and a stated value of $ 12.00per share, will pay dividends at the rate of 15% per annum of the stated value (or $ 1.80per share), and will be convertible by the holder at any time following the 90 thday following the date of effectiveness of the