Company: IPST
Filing Date: 2025-08-11
Form Type: 8-K
Source: 0001641172-25-022916
Chunk: 0

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-11
Form: 8-K
Item: Item 1.01
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Item
1.01 Entry into a Material Definitive Agreement.

On
August 11, 2025, Heritage Distilling Holding Company, Inc. (the “ Company Subscription Agreement Subscription Agreements Investor Investors Offering Shares Common Stock Pre-Funded Warrants Share Price

Included
among the Investors in the Offering are Story Foundation, the entity behind the Story Network (“ Story Foundation

Of
the total $223,819,964 purchase price for the Shares and the Pre-Funded Warrants, $50,862,166 is expected to be paid in
cash, $49,137,833 is expected to be paid in the cryptocurrency stablecoin commonly referred to as USDC (“ USDC $IP Tokens CoinMarketCap. com CoinMarketCap. com CoinMarketCap. com

The
Offering is expected to close on or about August 13, 2025, subject to the satisfaction of customary closing conditions.
The Company intends to use (a) up to $4.0 million of the net proceeds from the Offering for general corporate purposes initiated after
the closing, (b) up to $0.6 million for pre-existing working capital commitments or obligations, and (c) at least $80.0 million to purchase
$IP Tokens from Story Foundation at a price per $IP Token of $3.40. The balance of the net proceeds will be used to purchase or otherwise
acquire $IP Tokens and for the establishment of the Company’s cryptocurrency treasury operations to the extent consistent with
the Company’s investment policy as amended or otherwise modified from time to time. The Company shall not use more than $7.0 million
of such proceeds: (i) for the satisfaction of any portion of the Company’s debt (other than payment of trade payables in the ordinary
course of the Company’s business and prior practices), (ii) for the redemption of any Common Stock or (iii) for the settlement
of any outstanding litigation. In connection with the announcement of the Offering, the Company announced the launch of its digital asset
treasury reserve strategy, to be effective upon the closing of the Offering, pursuant to which the Company plans to use $IP Tokens as
its primary treasury reserve asset on an ongoing basis.

The
Pre-Funded Warrants

The
Pre-Funded Warrants to be issued pursuant to the Subscription Agreements will be exercisable to purchase an aggregate of
186,900,000 shares of Common Stock (the “ Pre-Funded Warrant Shares Beneficial Ownership Limitation