Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 16

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 16
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 initial public offering and the concurrent private placement, before deducting underwriting discounts and commissions
and offering and private placement expenses payable us, were approximately $8.275 million.

The Equity Line of Credit. On January
23, 2025, we entered into the ELOC Purchase Agreement with the Investor establishing the Facility. Pursuant to and subject to the conditions
set forth in the ELOC Purchase Agreement, beginning on February 6, 2025 (the “Commencement Date”), we have the right from
time to time at our option to direct the Investor to purchase the ELOC Shares up to the lesser of (i) a maximum aggregate purchase price
of $15,000,000 (the “Maximum Commitment Amount”), and (ii) the Exchange Cap (as defined below), subject to certain limitations
and conditions set forth in the ELOC Purchase Agreement. Sales of the ELOC Shares to the Investor under the ELOC Purchase Agreement,
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 Investor. To the extent we sell shares under the ELOC Purchase Agreement, we currently plan to use any
proceeds for the purchase of raw goods to produce more products for sale, additional digital marketing to drive more e-commerce sales,
marketing and sales support to grow our wholesale efforts, additional marketing efforts to expand our TBN growth, the addition of key
finance staff to ameliorate deficiencies identified by our auditors, the repayment of debt and other obligations, and general working
capital.

On January 23, 2025, we issued to the
Investor the Commitment Warrant to purchase up to 67,162 shares of common stock for a purchase price of $0.001 per share, as
consideration for its entry into the ELOC Purchase Agreement. The Investor paid no cash consideration for the Commitment Warrant.
Accordingly, any proceeds received by the Investor upon its exercise of the Commitment Warrant and subsequent sale of such
Commitment Shares would be profit. As of the date of this prospectus, except for the shares of our Series B Convertible Preferred