Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 88

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 88
---
 our common stock on January 22, 2025, as reported by Nasdaq, of $1.16 per share, less a 5% discount.           |
| (4) | Represents                                                                                                                         
 the minimum price for which the average price paid for all shares of common stock issued under the ELOC Purchase Agreement must be 
 in order for the sales to be considered “at market” under applicable stock exchange rules and therefore not subject to             
 the 19.99% issuance limit.                                                                                                         |

Purchase and Sale of Series B Preferred Stock

Pursuant to the ELOC Purchase Agreement, we sold to the Investor for an aggregate purchase price of $1,000,000 for an aggregate of 100,000 shares of our Series B Preferred Stock, of which $500,000, or 50,000 shares, were sold on January 23, 2025 in connection with the execution of the ELOC Purchase Agreement and $500,000, or 50,000 shares, were sold on February 4, 2025. following the initial effective date of the registration statement, of which this prospectus forms a part. Each such share of Series B Preferred Stock has 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 Investor at any time following the 180th day following the date of the ELOC Purchase Agreement (July 23, 2025) into a number of shares of common stock determined by dividing (a) an amount equal to 110% of the sum of (i) the stated value plus (ii) the amount of all accrued and unpaid dividends, by (b) the then-applicable conversion price, provided that we and the Investor have entered into a letter agreement dated January 23, 2025 under which the Investor has agreed that it will not convert shares of Series B Preferred Stock for a number of shares of common stock that would give it and its affiliates beneficial ownership of an amount of common stock greater than 1% of the total outstanding common stock after giving effect to such conversion. The Series B Preferred Stock is also mandatorily convertible on such basis on the third anniversary of the initial date of issuance of the Series B Preferred Stock. The conversion price of the shares of Series B Preferred Stock sold to the Investor is $1.10 per share, subject