Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 231

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 231
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 of $ 10per bottle of a new product offering of Special Forces labelled spirits. As of December 31, 2024, the Company had sold 20,608bottles of the new product offering of Special Forces labelled spirits, representing approximately $ 1,635,458in retail shelf value. These royalties were eliminated in conjunction with the April 2024 exchange of the Whiskey Notes and related Warrants into common stock (upon the Company’s initial public offering, which occurred on November 25, 2024).

The outstanding balance of the Whiskey Special Ops 2023 Notes and accrued interest could have, in whole or part, been converted into common stock prior to maturity at the option of the holder so long as the price per share was equal to or greater than the original IPO price. Any principal and accrued interest remaining outstanding upon maturity would have been mandatorily converted into common stock of the Company at the rate of $ 1.25per $ 1.00of outstanding principal and accrued interest at a price per share equal to the then market price per share, but in no case less than 80% of the Company’s original IPO price.

Exchange of Convertible Whiskey Special Ops 2023 Notes

In April 2024, the holders of Whiskey Notes (including 755,919related Warrants based on a $ 5.00per share exercise price) agreed to exchange for common stock (and prepaid warrants). The then outstanding $ 23,311,063in aggregate fair value, (including $ 8,723,321which was with a related party); $ 8,678,433of principal amount, including accrued interest (including $ 3,247,425which was with a related party); $ 6,630,870of proceeds, (of which $ 2,233,000was with a related party) of the Whiskey Notes and related Warrants (Warrant Liability), in accordance with a Subscription Exchange Agreement, exchanged (contingent upon the consummation of the Company’s initial public offering, which occurred on November 25, 2024) for a total of 2,399,090shares of common stock and 546,927prepaid warrants to purchase common stock (of which 1,203,783shares were with a related party). Such prepaid warrants will be eligible for exercise without the payment of additional consideration (except the $ 0.001per share exercise price) at any time that the respective holder beneficially