Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 14

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 14
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 cash proceeds (inclusive of proceeds paid in USDC) of $95.0 million from the offering of Pre -FundedWarrants and used (i) approximately $80.0 million of such net proceeds to purchase $IP Tokens from Story Foundation at a price per $IP Token of $3.40, and (ii) approximately $7.0 million of such net proceeds for the repayment of indebtedness. We used the remaining net proceeds for the payment of outstanding trade payables, working capital and general corporate purposes, and for the establishment of our cryptocurrency treasury operations to the extent consistent with our investment policy as amended or otherwise modified from time to time. In anticipation of the offering of Pre -FundedWarrants, between June 19, 2025 and August 10, 2025, we entered into advisory and implementation agreements (the “Advisory Agreements”) with Open World, Inc. and certain of its management and affiliates, S.Y. Lee, the founder and chief executive officer of PIP Labs, the original creator of Story, and certain other advisors to our company (collectively, the “Advisors”), pursuant to which the Advisors will provide to us certain consulting, strategy and business development services related to our establishment of a treasury function in certain non -securitycryptocurrencies, including $IP Tokens. Pursuant to the Advisory Agreements, in consideration for the advisory services of the Advisors, we issued to certain Advisors an aggregate of 323,854shares of common stock, warrants (the “Advisory Warrants”) to purchase up to an aggregate of 875,000shares of common stock for a purchase price of $0.20 per share, with each Advisory Warrant subject to vesting, forfeiture and such other terms as are set forth therein, and restricted stock units that, upon vesting, will settle into an aggregate of 125,000shares of common stock. For additional information about our offering of Pre -FundedWarrants, see “Issuance of Securities to Selling Stockholders — Offering of Pre -FundedWarrants” commencing on page 66. Risks Associated with Our Business Our ability to execute our business strategy is subject to numerous risks, as more fully described in the section captioned “Risk Factors” immediately following this prospectus summary. You should read these risks before you invest in our common stock. Risks associated with our business include, but are not limited to, the following: •Our operating history and evolving business make it difficult to evaluate