Company: IPST
Filing Date: 2025-06-03
Form Type: 8-K
Source: 0001788230-25-000105
Chunk: 1

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-03
Form: 8-K
Item: Item 3.02
Chunk 1
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 Series B Stated Value (or $1.80 per share) payable if and when declared by the Company’s board of directors or upon conversion or redemption of the Series B Preferred Stock. Dividends on the Series B Preferred Stock may be paid by the Company in cash, by delivery of shares of common stock or through a combination of cash and shares of common stock. If paid in common stock, the holder will receive a number of shares of common stock equal to the quotient of 110% of the accrued dividends to be paid in common stock divided by the Series B Conversion Price (as defined below). We may make payments of dividends in common stock only if the average closing price of the Company’s common stock over the five trading days preceding the dividend payment date is at or above the Series B Conversion Price.

Voting Rights. Holders of the Series B Preferred Stock have no voting rights except in connection with a proposed amendment to the terms of the Series B Preferred Stock or as required by law.

Optional Conversion. Each share of Series B Preferred Stock may be converted at any time after the six-month anniversary of the date of issuance 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 and unpaid dividends, by (b) the then applicable Series B Conversion Price of such shares of Series B Preferred Stock. The “ Series B Conversion Price” for a share of Series B Preferred Stock is the fixed price equaling the volume weighted average price of our common stock on the trading day preceding the date of issuance of such share of Series B Preferred Stock. The 642,137 shares of Series B Preferred Stock issued pursuant to the Purchase Agreements have conversion prices ranging from $0.4736 to $1.17 per share of common stock and a weighted average conversion price of $0.47 per share of common stock. However, a holder (together with its affiliates) may not convert any of such holder’s shares of Series B Preferred Stock to the extent that the holder (together with its affiliates) would own more than 4.99% (or, at the election of the holder, 9.99%) of our outstanding shares of common stock immediately after conversion, as such percentage ownership is determined in accordance with the terms of the Series B Preferred Stock.

Mandatory Conversion. Each share of Series B Preferred Stock will automatically be converted on the third