Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 272

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 272
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shares was from the exchange of 700,000prepaid warrants at a VWAP of $0.56per prepaid warrant; and $1,257,000or 125,700shares was from other investors (of which $105,000or 10,500shares was from a related party) In connection with the sale of such shares of Series B Preferred Stock subsequent to March 31, 2025, the Company issued to certain purchasers of such shares, warrants to purchase an aggregate of 792,018 shares of common stock at $0.01 per share, and prepaid warrants to purchase 327,868 shares of common stock at $0.001per share.

In consideration of purchases of Series B Preferred Stock by certain Series A Preferred Stock holders subsequent to March 31, 2025, on May 1, 2025, certain shareholders agreed to exchange an aggregate of 284,140shares of Series A Preferred Stock at a negotiated aggregate value of $4,092,560of Series A Preferred Stock (at Stated Value of $12per share and including accrued dividends) and 116,263related warrants to purchase common stock at $4.00per share into 409,256shares of Series B Preferred Stock (including $2,640,430or 183,122shares of Series A Preferred Stock and 75,702warrants to purchase common stock at $4.00per share converted into 264,043shares of Series B Preferred Stock of a related party). The value of Series A Preferred Stock and related warrants exchanged for Series B Preferred Stock was negotiated based upon: the related Stated Value of the Series A Preferred Stock (or 284,140shares at $12Stated Value = $3,409,680) and accrued dividends thereon (of $343,392) through May 1, 2025; plus the value of the related warrants to purchase common stock (calculated using a Black Scholes valuation model). As of May 29, 2025, there were outstanding: 742,137shares of Series B Preferred Stock; 210,700shares of Series A Preferred Stock; and, 129,998warrants to purchase common stock at $4.00per share related to the Series A Preferred Stock.

Prepaid Warrants— Subsequent to March 31, 2025: 700,000prepaid warrants were exchanged for 39,200shares of Series B Preferred Stock; 327,868prepaid warrants were issued in