Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 238

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 238
---
 Accordingly, the $ 10,900,000in 2022 Convertible Promissory Notes subscriptions and $ 5,430,000in 2023 Convertible Promissory Notes subscriptions will be due an aggregate of $ 24,495,000upon the sale of Flavored Bourbon, LLC to an arm’s length third party. 2023 Series — Convertible Whiskey Special Ops 2023 Notes In September 2023, the Company opened a $ 5,000,000round of convertible notes with a 12.5% interest rate and an August 29, 2026maturity date (the “Whiskey Special Ops 2023 Notes” or the “Whiskey Notes”). In March 2024, the round was increased to $ 10,000,000. As of September 30. 2024 and December 31, 2023, the Company had $ 8,526,245and $ 2,975,000, respectively, in outstanding principal, and $ 6,630,870and $ 2,975,000, respectively, of proceeds of Whiskey Special Ops 2023 Notes with: a fair value for the Notes (separately) of $ 14,283,752and $ 1,452,568, respectively, (of which, $ 2,405,500and $ 800,000, respectively, in principal, $ 2,233,000and $ 800,000, respectively, of proceeds, and $ 5,346,807and $ 390,607, respectively, in Fair Value was with a related party); and a fair value for the related Warrant Liability of $ 18,658and $ 1,512,692, respectively, (of which $ 6,346and $ 406,774, respectively, in Fair Value was with a related party). The Whiskey Special Ops 2023 Notes included warrant coverage equal to the Subscription Amount actually paid by the Holder pursuant to the Securities Purchase Agreement, divided by the Exercise Price, as defined as the price per share of the Company’s assumed IPO or, in the event the Company has not consummated the IPO, $ 10.00dollars per share. Total warrants outstanding if calculated using the then assumed IPO price of $ 5.00per share as of September 30, 2024 would be 755,919(of which 254,562would be to a related party). The