Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 311

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 311
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 maturity at the option of the holder so long as the price per share was equal to or greater than the original IPO price. Any principal and accrued interest remaining outstanding upon maturity would have been mandatorily converted into common stock of the Company at the rate of $ 1.25per $ 1.00of outstanding principal and accrued interest at a price per share equal to the then market price per share, but in no case less than 80% of the Company’s original IPO price.

Exchange of Convertible Whiskey Special Ops 2023 Notes

In April 2024, the holders of Whiskey Notes (including 755,919related Warrants based on a $ 5.00per share exercise price) agreed to exchange for common stock (and prepaid warrants). The then outstanding $ 23,311,063in aggregate fair value, (including $ 8,723,321which was with a related party); $ 8,678,433of principal amount, including accrued interest (including $ 3,247,425which was with a related party); $ 6,630,870of proceeds, (of which $ 2,233,000was with a related party) of the Whiskey Notes and related Warrants (Warrant Liability), in accordance with a Subscription Exchange Agreement, exchanged (contingent upon the consummation of the Company’s initial public offering, which occurred on November 25, 2024) for a total of 2,399,090shares of common stock and 546,927prepaid warrants to purchase common stock (of which 1,203,783shares were with a related party). Such prepaid warrants will be eligible for exercise without the payment of additional consideration (except the $ 0.001per share exercise price) at any time that the respective holder beneficially owns a number of shares of common stock that is less than 4.99% of the Company’s outstanding shares of common stock for a number of shares that would cause the holder to beneficially own up to 4.99% of the Company’s outstanding shares of common stock, and having no expiration date.

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Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 5 — CONVERTIBLE NOTES(cont.)

Upon the effectiveness of the Company’s initial public offering (on November 25, 2024, the fair value of such convertible promissory notes and related warrant liabilities decreased and was reclassified from a liability to equity in the aggregate