Company: IPST
Filing Date: 2025-01-24
Form Type: 8-K
Source: 0001788230-25-000012
Chunk: 1

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-24
Form: 8-K
Item: Item 1.01
Chunk 1
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 as to the appropriate sources of funding for the Company and its operations.

During the term described above, on any trading day on which the closing sale price of the Common Stock is equal to or greater than $1.00 (the “ Fixed Purchase Date’), the Company will have the right, but not the obligation, from time to time at its sole discretion, subject to the restrictions and satisfaction of the conditions in the Purchase Agreement, to direct the Investor, by delivery of an irrevocable written notice (a “ Fixed Purchase Notice”), to purchase a number of shares of Common Stock (the “ Fixed Purchase”), for an aggregate purchase price of not less than $10,000 and not more than the lesser of (i) $1,000,000, subject to adjustment, or (ii) 100% of the average daily trading dollar volume for the Common Stock during the three trading days preceding the Fixed Purchase Date (the “ Fixed Purchase Maximum Amount”), at a purchase price per share (the “ Fixed Purchase Price”) equal to 95% of the average of the daily VWAP (as defined below) of the Common Stock for the two trading days immediately preceding the applicable Fixed Purchase Date.

In addition, at any time from and after the Commencement Date, on any business day on which the closing sale price of the Common Stock is equal to or greater than $1.00 and such business day is also the Fixed Purchase Date for a Fixed Purchase of an amount of shares of Common Stock not less than the applicable Fixed Purchase Maximum Amount (calculated as of the applicable Fixed Purchase Date), the Company may also direct the Investor, by delivery of an irrevocable written notice (a “ VWAP Purchase Notice”), to purchase, on the immediately following business day (the “ VWAP Purchase Date”), an additional number of shares of Common Stock in an amount equal to the lesser of (i) 300% of the number of shares of Common Stock directed by the Company to be purchased by the Investor for the applicable Fixed Purchase and (ii) 30% of the trading volume in the Common Stock on Nasdaq during the applicable VWAP Purchase Period (as defined in the Purchase Agreement) on the applicable VWAP Purchase Date (the “ VWAP Purchase”), at a purchase price per share equal to 95% of the lesser of (i) the closing sale price of the Common Stock on the business day immediately preceding the applicable VWAP Purchase Date and (ii) the VWAP during the applicable VWAP Purchase Period (the