Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 364

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 364
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3 Notes”)
to $10,000,000.

Subsequent to $2,975,000 raised through December 31,
2023, the Company raised additional proceeds under the terms of the Whiskey Special Ops 2023 Notes (“Whiskey Notes”) of $767,000
in January 2024, $718,110 in February 2024, $1,630,760 in March 2024, and $540,000 in April 2024, through April 26, 2024,
for aggregate total principal of $6,803,370 and proceeds of $6,630,870 (of which, $2,405,500 of principal and $2,233,000 of proceeds was
with a related party). Beginning in January 2024, the Company offered holders of the Whiskey Notes an option to exchange their Whiskey
Notes and related warrants for equity under the terms of the most recent round of 2023 Convertible Notes. Subsequent to December 31, 2023
and through April 26, 2024, the Whiskey Notes (including 884,116 related warrants) agreed to exchange for common stock. The then-outstanding
$26,797,284 in aggregate fair value of the Whiskey Notes and related Warrants (Warrant Liability) were exchanged (contingent upon the
consummation of this offering) for a total of 2,399,090 shares of our common stock and prepaid warrants for 546,927 shares of common stock
under a negotiated Subscription Exchange Agreement. The actual unconditional exchange of the Whiskey Notes and related warrants and reclassification
to equity (of Common Stock Par Value and Paid-in-capital of $517 and $27,591,635, respectively) under the terms of the Subscription Exchange
Agreement will occur upon the effectiveness of the Company’s anticipated IPO — which is the remaining prerequisite for the
unconditional exchange of the Whiskey Notes and related warrants for equity. Until such a time, the Whiskey Notes and related Warrant
Liabilities will remain on our balance sheet, and the change in their fair values will also continue to be recognized as Other Income/(Expense)
in our Statement of Operations. (See Note 5.)

In December 2023, the Company entered into
an agreement with a wholesaler distributor network in Oklahoma, which will purchase products from the Company at wholesale and resell
and distribute that product throughout the state through the state’s three tier system. The