Company: IPST
Filing Date: 2025-01-24
Form Type: 8-K
Source: 0001788230-25-000012
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Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-24
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into Material Definitive Agreement.

Securities Purchase Agreement

On January 23, 2025, Heritage Distilling Holding Company, Inc. (the “ Company”) entered into a securities purchase agreement (the “ Purchase Agreement”) with C/M Capital Master Fund, LP (the “ Investor”), pursuant to which the Company, subject to the restrictions and satisfaction of the conditions in the Purchase Agreement, has the right, but not the obligation, to sell to the Investor, and the Investor is obligated to purchase, up to the lesser of (i) $15.0 million of newly-issued shares (the “ Purchase Shares”) of the Company’s common stock, $0.0001 par value per share (the “ Common Stock”), and (ii) the Exchange Cap (as defined below). As consideration for the Purchaser’s execution and delivery of the Purchase Agreement, the Company issued to the Purchaser, simultaneously with the execution and delivery of the Purchase Agreement, a stock purchase warrant (the “ Commitment Warrant”) to purchase 67,162 shares of Common Stock (the “ Commitment Shares” and, together with the Purchase Shares, the “ Securities”) for a purchase price of $0.001 per share. The Commitment Warrant has a term of five years and expires on January 23, 2030.

The Company does not have a right to commence any sales of Common Stock to the Investor under the Purchase Agreement until the time when all of the conditions to the Company’s right to commence sales of Common Stock to the Investor set forth in the Purchase Agreement have been satisfied, including that a registration statement covering the resale of the Securities is declared effective by the Securities and Exchange Commission (the “ SEC”) and the final form of prospectus contained therein is filed with the SEC (the “ Commencement Date”).

Over the 36-month period from and after the Commencement Date (unless the Purchase Agreement is terminated earlier in accordance with its terms), the Investor has no right to require the Company to sell any shares of Common Stock to the Investor, but the Investor is obligated to make purchases as the Company directs, subject to certain conditions. There are no upper limits on the price per share that the Investor must pay for shares of Common Stock. Actual sales of shares of Common Stock to the Investor will depend on a variety of factors to be determined by the Company from time to time, including, among others, market conditions, the trading price of the Common Stock and determinations by the Company