Company: IPST
Filing Date: 2025-08-15
Form Type: 424B3
Source: 0001641172-25-024441
Chunk: 50

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-15
Form: 424B3
Chunk 50
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557 (744,354 shares) of Series B Preferred Stock (of which $2,995,437 was from a related party) which included: $4,092,560 or 409,256 shares from the exchange of Series A Preferred Stock and related warrants at a negotiated aggregate value (of which $2,640,437 or 264,043 shares was from a related party); $392,000 or 55,917 shares was from the exchange of 700,000 prepaid warrants at a VWAP of $0.56 per prepaid warrant; $167,180 or 16,717 shares was from the exchange of 327,868 prepaid warrants at a VWAP of $0.510 per prepaid warrant; $1,150,000 or 115,000 shares was from the ELOC Investor, of which $499,991 was purchased in January 2025 in conjunction with the execution and registration of the ELOC Purchase Agreement; and $1,641,810 or 164,181 shares was from other investors (of which $355,000 or 35,500 shares was from a related party, of which, one other investor subscription of $100,000 or 10,000 shares included a negotiated 327,868 prepaid warrants to purchase common stock at $0.001 per share).

The Series B Preferred Stock has a liquidation preference equal to the greater of (i) 110% of the sum of (a) the Series B Preferred Stock Stated Value, plus (b) the amount of the aggregate dividends then accrued on such share of Series B Preferred Stock and not previously paid, or (ii) such amount per share as would have been payable had all shares of Series B Preferred Stock been converted into common stock immediately prior to such liquidation, dissolution or winding up. Accordingly, the Series B Preferred Stock liquidation preference as of June 30, 2025 (with 744,354 shares outstanding and a stated value of $8,932,248) was $10,072,005, or 20,737,012. shares of common stock based on the respective Conversion Prices with a high of $1.12, a low of $0.4736, and a weighted average of $0.49. Subsequent to June 30, 2025, the Series B Preferred liquidation preference (with 756,854 shares outstanding and a stated value of $9,082,248) was $10,405,553. Subsequent to June