Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 9

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 9
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, and the timing of any sales, will be determined by us from time to time in our sole discretion and will depend on a variety of factors, including, among others, market conditions, the trading price of our shares and determinations by us regarding the use of proceeds from any sale of such ELOC Shares. The net proceeds from any sales under the Facility will depend on the frequency with, and prices at, which the ELOC Shares are sold to the ELOC Investor. Pursuant to the ELOC Purchase Agreement, we sold to the ELOC Investor for an aggregate purchase price of $1,000,000 an aggregate of 100,000shares of our Series B Preferred Stock, of which 50,000shares were sold on January 23, 2025 in connection with the execution of the ELOC Purchase Agreement and 50,000shares were sold on February 5, 2025. Each such share of Series B Preferred Stock had a purchase price of $10.00 per share with a stated value of $12.00 per share and required the payment of dividends at the rate of 15% per annum of the stated value (or $1.80 per share). Any time following the six month anniversary of the day on which such Series B Preferred Stock was sold, such Series B Preferred Stock was convertible by the ELOC Investor into a number of shares of common stock determined by dividing (a) an amount equal to 110% of the sum of (i) the stated value plus (ii) the amount of all accrued and unpaid dividends, by (b) the then -applicableconversion price, provided that we and the ELOC Investor entered into a letter agreement dated January 23, 2025 under which the ELOC Investor agreed that it would not convert shares of Series B Preferred Stock for a number of shares of common stock that would give it and its affiliates beneficial ownership of an amount of common stock greater than 1% of the total outstanding common stock after giving effect to such conversion. The conversion price of the Series B Preferred Stock issued to the ELOC Investor was originally $22.00 per share, subject to adjustment, which was subsequently adjusted to $9.472 per share based on the price per share at which we subsequently sold shares of our common stock. The Series B Preferred Stock was subject to redemption by us at our option at any time, but subject to any restrictions on such redemption in our credit facilities, at a redemption price equal to the stated value of the Series B Preferred Stock