Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 334

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 334
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 Notes have a maturity date of July 31, 2024. The 2022 Notes are convertible, in whole or
in part, into shares of the Company’s common stock at a conversion price of $157.89 per share at the option of the convertible noteholders,
at any time and from time to time. If the Company consummates an IPO or a merger with a SPAC (a “deSPAC merger”), the unpaid
and accrued balances of the 2022 Notes and the associated interest will automatically convert into the Company’s common stock at
a discounted conversion price from either the price per share at which the Company’s common stock is sold in the IPO or the redemption
price per share under a deSPAC merger. The 2022 Notes also contain certain other covenants that, among other things, impose certain restrictions
on indebtedness and investments. The 2022 Notes may be used for general corporate purposes, including working capital needs, capital expenditures,
and the share repurchase program. In October and November 2023, the holders of the 2022 Notes agreed to exchange the convertible
notes and accrued interest under the mandatory conversion provision of the 2022 Notes, for common stock of the Company. (See below.)

2023 Convertible Promissory Notes

Beginning in March 2023 through August 2023,
the Company issued multiple convertible promissory notes (collectively the “2023 Convertible Notes”) with various terms to
various new and existing investors with aggregate net cash proceeds of $5,330,000 and aggregate principal sum of $7,230,500 (of which
$2,950,000 in cash proceeds and $3,982,500 in principal was from a related party). In October and November 2023, the holders of the
2023 Convertible Notes agreed to exchange the convertible notes and accrued interest for common stock and prepaid warrants to purchase
common stock of the Company. (See below.)

<div align='center'>F-59

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements</div>

NOTE 5 — CONVERTIBLE NOTES (cont.)

Exchange of 2022 and 2023 Convertible Promissory Notes

In October 2023 the holders of the 2022 and
2023 Convertible Notes entered into a Subscription Exchange Agreement to exchange into equity the value of their 2022 and 2023 Convertible
Notes with all accrued interest and fees through, and