Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 15

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 15
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 is equal to or greater than $1.10, which is a price equal to the lower of (A) the Nasdaq Official Closing Price of our common stock immediately preceding the execution of the Purchase Agreement and (B) the average Nasdaq Official Closing Price of our common stock for the five trading days immediately preceding the execution of the ELOC Purchase Agreement, as calculated in accordance with the rules of Nasdaq, such that the sales of such common stock to the Investor would not count toward such limit because they are “at market” under applicable stock exchange rules.

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Under the terms of the ELOC Purchase Agreement, the Investor may not purchase any ELOC Shares under the ELOC Purchase Agreement if such shares, when aggregated with all other shares then beneficially owned by the Investor and its affiliates (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule13d-3 promulgated thereunder) would result in the Investor beneficially owning shares in excess of 4.99% of the number of our shares outstanding immediately after giving effect to the issuance of shares issuable pursuant to a Put Notice (as defined below).

The ELOC Purchase Agreement and the ELOC Registration Rights Agreement contain customary representations, warranties, conditions and indemnification obligations by each party. The representations, warranties and covenants contained in the ELOC Purchase Agreement were made only for purposes of the ELOC Purchase Agreement and as of specific dates, were solely for the benefit of the parties to such agreements and are subject to certain important limitations.

For more detailed information about the Equity Line of Credit, see “The Equity Line of Credit” beginning on page 49.

Through May 29, 2025, an aggregate of 1,187,453 shares of common stock had been sold to the Investor under the ELOC Purchase Agreement for which we received aggregate gross proceeds in the amount of $645,074.

Private Placement of Additional Shares of Series B Preferred Stock. Including the shares of Series B Preferred Stock sold to the Investor under the ELOC Purchase Agreement as discussed above, between February 21, 2025 and May 29, 2025, we sold in a private placement to 13 additional accredited investors an aggregate of 742,137 shares of Series B Preferred Stock, with certain investors receiving an aggregate of: 911,225 warrants to purchase common stock at $0.01 per share (including 102,437 of such warrants to a related