Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 345

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 345
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 Stock may be converted at any time at the election of the holder into a number of shares of common stock determined by dividing (a) an amount equal to 110% of the sum of (i) the Series B Stated Value plus (ii) the amount of all accrued dividends, by (b) the then applicable Conversion Price (equal to the VWAP of the common stock on the trading day immediately preceding the original issuance date or such shares of Series B Preferred Stock). Each share of Series B Preferred Stock will automatically be converted on the 36month anniversary of the original issuance date into a number of shares of common stock determined by dividing (a) an amount equal to 110% of the sum of (i) the Series B Stated Value plus (ii) the amount of all accrued dividends, by (b) the then -applicableConversion Price. Any time on or after the 90day anniversary or the original issue date of such shares of Series B Preferred Stock, the Company shall have the right to redeem some or all of the outstanding shares of Series B Preferred Stock from funds legally available therefor, upon at least 30 daysprior written notice to the holders of the Series B Preferred Stock, at a redemption price per share equal to 110%of the sum of the Stated Amount plus all accrued and unpaid dividends on such shares of Series B Preferred Stock. In connection with the initial aggregate $ 250,000of non -ELOCInvestor Series B Preferred Stock subscriptions (of which $ 125,000was with a related party), the Company also issued 5,960warrants to purchase common stock at $ 0.20per share (of which 2,670of the warrants were to a related party). In consideration of purchases of Series B Preferred Stock by certain Series A Preferred Stock holders, on May 1, 2025, certain shareholders agreed to exchange an aggregate of 284,140shares of Series A Preferred Stock at a negotiated aggregate value of $ 4,092,560of Series A Preferred Stock (at Stated Value of $ 12per share and including accrued dividends) and 5,813related warrants to purchase common stock at $ 80per share into 409,256shares of Series B Preferred Stock (including $ 2,640,430or 183,122shares of Series A Preferred Stock and 3,785warrants to purchase common stock at $ 80per share converted into 264,043shares of Series B Preferred Stock of a related