Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 291

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 291
---
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.

| F-52 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 17 — SUBSEQUENT EVENTS(cont.)

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 30days prior 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.

Subsequent to December 31, 2024, as of April 28, 2025, the Company had received subscriptions for $ 2,551,810( 255,181shares) of Series B Preferred Stock (of which $ 250,000was from a related party), including: $ 392,000( 39,200shares at a Conversion Price of $ 0.56per share of common stock) from the exchange of 700,000prepaid warrants at a VWAP of $ 0.56per prepaid warrant; and $ 1,150,000( 115,000shares) from the ELOC Investor, of which $ 1,000,000( 100,000shares at a Conversion Price of $ 1.11per share of common stock) was purchased in January 2025 in conjunction with the execution and registration of the ELOC Purchase Agreement. The Series B Preferred Stock has Conversion Prices ranging from $ 0.4736to $ 1.17per share of common stock, and a weighted average Conversion Price of $ 0.741per share of common stock. An additional 119,207warrants were issued with the Series B Preferred Stock with a weighted average exercise price of $ 1.05per warrant and an additional 327,868warrants were issued with an exercise price of $ .001per share. (See Note 9.)

The Series B Preferred Stock has a liquidation preference equal to the greater of (i) 110% of the sum of (a) the Series B Stated Value, plus (b) the amount of the aggregate dividends then accrued on such share of