Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 309

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 309
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 Shares”. The Investor has agreed not to sell more of such Commitment Shares in any one trading day than is
equal to seven percent (7%) of the total trading volume on the day such Commitment Shares are sold. Such warrants will be issued to
the Investor as consideration for its entry into the ELOC Purchase Agreement (the “Commitment Warrants”). Further, the
Company and the Investor have entered into a letter agreement dated January 23, 2025 under which Investor shall not be allowed to
convert its Commitment Warrants into common stock in an amount greater than 1% of the total outstanding common stock of the Company
after such conversion would be completed (the “1% Blocker”) As of January 23, 2025, except for the shares of the
Company’s Series B Convertible Preferred Stock (“Series B Preferred Stock”) discussed below, no other shares have
been issued to the Investor.

<div align='center'>F-41

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

NOTE 16 — SUBSEQUENT EVENTS (cont.)

Pursuant to the ELOC Purchase Agreement, the Investor also agreed to purchase $1,000,000 of the Company’s Series B Preferred Stock, of which $500,000 will be purchased, and the Company will deliver such Series B Preferred Shares, within twenty four (24) hours after the ELOC Registration Statement is filed with the SEC. The second tranche of $500,000 will be purchased, and the Company will deliver such Series B Preferred shares, within three trading days following the date the ELOC Registration Statement is declared effective by the SEC. Each share of Series B Preferred Stock will have a purchase price of $10.00 per share and a stated value of $12.00 per share, will pay dividends at the rate of 15% per annum of the stated value (or $1.80 per share), and will be convertible by the holder at any time following the 180 thday following the date such Series B Preferred shares are purchased, provided that the Company and the Investor have entered into a letter agreement dated January 23, 2025 under which Investor shall not be allowed to convert its Series B Preferred Stock into common stock in an amount greater than 1% of the total outstanding common stock of the Company after such conversion would be completed (the “1% Blocker”). The conversion of Series B Preferred Stock into common stock shall be