Company: IPST
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001788230-25-000148
Chunk: 36

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 36
---
 bid-price listing requirement. We applied and were granted a 180-day period to re-gain compliance, which will expire on October 13, 2025. If we are not in compliance by October 13, 2025, we may be afforded a second 180-calendar day compliance period. To qualify for this additional time, we will be required to meet the continued listing requirement for market value of publicly-held shares and all other initial listing standards for the Nasdaq Capital Market with the exception of the minimum bid price requirement, and will need to provide written notice to Nasdaq of our intent to regain compliance with such requirement during such second compliance period. Reducing the number of outstanding shares of our common stock should, absent other factors, result in an increase in the per share market price of our common stock in satisfaction of Nasdaq’s continued listing standards. However, there is no guarantee that implementing the Reverse Stock Split will increase the price of our common stock sufficiently to be able to re-gain such compliance. If we are otherwise unable to comply with the listing standards, such noncompliance or a delisting from Nasdaq would materially and adversely affect our ability to raise capital, including under our current agreements, and our financial condition and business.

| Heritage Distilling Holding Company, Inc. |     | 21 |     | Special Meeting Proxy Statement |

Proposal Five

TO POTENTIALLY ATTRACT INVESTMENT CAPITAL

With a high number of issued and outstanding shares of common stock, the price per share of our common stock may be too low for us to attract investment capital on reasonable terms for us. We believe that the Reverse Stock Split will make our common stock more attractive to a broader range of institutional investors, professional investors, and other members of the investing public.

TO POTENTIALLY IMPROVE THE MARKETABILITY AND LIQUIDITY OF OUR COMMON STOCK

The Board believes that an increased stock price may also improve the marketability and liquidity of our common stock. For example, many brokerages, institutional investors and funds have internal policies that either prohibit them from investing in low-priced stocks or tend to discourage individual brokers from recommending low-priced stocks to their customers by restricting or limiting the ability to purchase such stocks on margin. We believe that the Reverse Stock Split may make our common stock a more attractive and cost-effective investment for many investors, which may enhance the liquidity of the holders of our common stock.

TO DECREASE THE RISK OF MARKET MANIPULATION OF OUR COMMON STOCK

The Board believes that the potential increase