Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 87

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 87
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 aggregate amount of ELOC Shares submitted in any single or combination of VWAP Purchase notices and/or Additional VWAP Purchase notices on a particular date require a payment from the Investor to us that exceeds $2,500,000, unless such limitation is waived by the Investor.

| 50 |

For purposes of the Purchase Agreement, “VWAP” shall mean the daily volume weighted average price of the common stock on Nasdaq as reported by Bloomberg through its “AQR” function.

All such determinations shall be appropriately adjusted for any sales of shares of common stock through block transactions, any reorganization, non-cash dividend, stock split, reverse stock split, stock combination, recapitalization or other similar transaction during such period.

Commitment Shares and Fees

As consideration for its irrevocable commitment to purchase our common stock under the ELOC Purchase Agreement, we have 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. The Commitment Warrant had a term of five years and originally expired on January 22, 2030. In February 2025, the Investor exercised the Commitment Warrant in full for an aggregate exercise price of $67.

Under the ELOC Agreement, we were required to pay to the Investor up to $15,000 in cash as reimbursement for the reasonable, out-of-pocket expenses incurred by the Investor, including the legal fees and disbursements of the Investor’s legal counsel, in connection with its due diligence investigation of our company and in connection with the preparation, negotiation and execution of the ELOC Purchase Agreement. The fess were netted out of the proceeds from the first put we made to the Investor.

Termination of the Purchase Agreement

Unless earlier terminated as provided in the ELOC Purchase Agreement, the ELOC Purchase Agreement will terminate automatically on the earliest to occur of:

| ● | the                                                                                                                                 
 first day of the month next following the 36-month anniversary of the Commencement Date;                                            |
| ● | the                                                                                                                                 
 date on which the Investor shall have purchased the Commitment Amount;                                                              |
| ● | the                                                                                                                                 
 ninetieth day after the date on which, pursuant to or within the meaning of any bankruptcy law, we commence a voluntary case or any 
 person commences a proceeding against us, in each case that is not discharged or dismissed prior to such ninetieth day; and         |
| ● | the                                                                                                                                 
 date on which, pursuant