Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 115

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 115
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 the number of shares of common stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Pre -FundedWarrants. Following approval of the offering of Pre -FundedWarrants by our stockholders, a holder of Pre -FundedWarrants may request the permanent suspension of the Beneficial Ownership Limitation from such holder’s Pre -FundedWarrants. We received net cash proceeds of approximately $218.8 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 $18.4 million of such net proceeds for the repayment of indebtedness and outstanding trade payables. We intend to use the remaining net proceeds for 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 connection with the offering of Pre -FundedWarrants, we paid to Cantor Fitzgerald & Co. and Roth Capital Partners, LLC, as placement agents for the offering, a cash placement agent fee in the aggregate amount of approximately $4.3 million and issued to such placement agents warrants (the “Placement Agent Warrants”) to purchase an aggregate of 4,307,289shares of common stock, initially with an exercise price of $0.01 per share and a five -yearterm. In anticipation of the Offering, 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, we will issue to certain Advisors, upon receipt of stockholder approval of the issuance of such shares, an aggregate of 6,416,168shares of common stock, and we issued to the Advisors warrants (the “Advisory Warrants”) to purchase 66 up to an aggregate of