Company: IPST
Filing Date: 2025-01-24
Form Type: 8-K
Source: 0001788230-25-000012
Chunk: 4

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-24
Form: 8-K
Item: Item 1.01
Chunk 4
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,000 of the Company’s newly-created Series B Convertible Preferred Stock, par value 0.0001 per share (the “ Series B Preferred Stock”), of which $500,000 was purchased and sold in connection with the execution and delivery of the Purchase Agreement and $500,000 will be purchased and sold within three trading days following the date the registration statement to be filed pursuant to the Registration Rights Agreement is declared effective by the SEC. Each share of Series B Preferred Stock will have a purchase price of $10.00 per share and a stated value of $12.00 per share, will pay dividends at the rate of 15% per annum of the stated value (or $1.80 per share), and will be convertible by the holder at any time

following the 180th day following its date of issuance into a number of shares of Common Stock determined by dividing (a) an amount equal to 110% of the sum of (i) the stated value plus (ii) the amount of all accrued and unpaid dividends, by (b) the then-applicable conversion price. The Series B Preferred Stock will also be mandatorily convertible on such basis on the third anniversary of the initial date of issuance of the Series B Preferred Stock. The conversion price of a share of Series B Preferred Stock will be equal to the VWAP of the Common Stock on the trading day immediately preceding the original date of issuance of such share of Series B Preferred Stock. The Series B Preferred Stock will be subject to redemption by the Company at its option at any time, but subject to any restrictions on such redemption in the Company’s credit facilities, at a redemption price equal to the stated value of the Series B Preferred Stock to be redeemed plus any accrued but unpaid dividends thereon.

The foregoing descriptions of the Purchase Agreement and the Registration Rights Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of such agreements, copies of which are attached hereto as Exhibits 10.1 and 10.2, respectively, and each of which is incorporated herein in its entirety by reference. The representations, warranties and covenants contained in such agreements were made only for purposes of such agreements and as of specific dates, were solely for the benefit of the parties to such agreements and may be subject to limitations agreed upon by the contracting parties. The foregoing descriptions of the Commitment Warrant and the Series B Preferred Stock do not purport to be complete and are qualified in their entirety by reference to the full text