Company: IPST
Filing Date: 2025-01-24
Form Type: 8-K
Source: 0001788230-25-000012
Chunk: 2

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-24
Form: 8-K
Item: Item 1.01
Chunk 2
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 “ VWAP Purchase Price”).

At any time from and after the Commencement Date, on any business day that is also the VWAP Purchase Date for a VWAP Purchase, the Company may also direct the Investor, by delivery of an irrevocable written notice (an “ Additional VWAP Purchase Notice” and, together with a Fixed Purchase Notice and a VWAP Purchase Notice, a “ Purchase Notice”), to purchase, on the same business day (the “ Additional VWAP Purchase Date” and, together with a Fixed Purchase Date and a VWAP Purchase Date, the “ Purchase Dates”), an additional number of shares of Common Stock in an amount equal to the lesser of (i) 300% of the number of shares of Common Stock directed by the Company to

be purchased by the Investor pursuant to the corresponding Fixed Purchase and (ii) 30% of the trading volume in the Common Stock on Nasdaq during the applicable Additional VWAP Purchase Period (as defined in the Purchase Agreement) on the applicable VWAP Purchase Date (an “ Additional VWAP Purchase”, and together with a Fixed Purchase and a VWAP Purchase, the “ Purchases”), at a purchase price per share equal to 95% of the lesser of (i) the closing sale price of the Common Stock on the business day immediately preceding the applicable Additional VWAP Purchase Date and (ii) the VWAP for the applicable Additional VWAP Purchase Period (as defined in the Purchase Agreement).

Notwithstanding the above, in no event may the aggregate amount of Purchase Shares submitted in any single or combination of VWAP Purchase notices and/or Additional VWAP Purchase notices on a particular date require a payment from the Investor to the Company that exceeds $2,500,000, unless such limitation is waived by the Investor.

For purposes of the Purchase Agreement, “ VWAP” shall mean the daily volume weighted average price of the Common Stock on Nasdaq as reported by Bloomberg through its “ AQR” function.

In addition, the Investor is not obligated to buy any shares of Common Stock pursuant to the Purchase Agreement if such shares of Common Stock, when aggregated with all other Common Stock then beneficially owned by the Investor and its affiliates (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, and Rule 13d-3 promulgated thereunder), would result in the Investor beneficially owning Common Stock in excess of 4.99% of the then-outstanding shares of Common Stock (the “ Beneficial Ownership Limit