Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 281

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 281
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Preferred stock — In May 2024,
the Company’s Board of Directors and Shareholders approved an offering of Series A Convertible Preferred Stock of up to $5,000,000,
of which $4,948,478 was issued and outstanding and $51,522 remained available for issuance as of September 30, 2024. The shares of
Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”) were sold at
a Subscription Price of $10 per share and have a stated value of $12 per share (the “Stated Value”), and included stock purchase
warrants to purchase shares of common stock calculated at 25% of the subscription price then divided by $5.00, with an exercise price
equal to the lesser of $5.00 per share or the price per share at which the common stock is sold in the Company’s initial public
offering. The warrants expire June 15, 2029. At any time after June 15, 2027, the Warrants shall be automatically exercised
on a cashless basis if the common stock has traded for 5 consecutive trading days at or above 125% of the Exercise Price. The Series A
Preferred Stock is entitled to receive, out of funds legally available therefor, cumulative dividends at the rate of 15% per annum of
the Stated Amount (or $1.80 per share) payable if and when declared by the Board of Directors of the Company or upon conversion or redemption
of the Series A Preferred Stock.

Dividends on the Series A Preferred Stock
may be paid by the Company in cash, by delivery of shares of common stock or through a combination of cash and shares of common stock.
If paid in common stock, the holder shall receive a number of shares of common stock equal to the quotient of 110% of the accrued dividends
to be paid in common stock divided by the Conversion Price (as defined below). The Company may make payments of dividends in common stock
only if the average closing price of the common stock over the five trading days preceding the dividend payment date is at or above
the Conversion Price. Holders of the Series A Preferred Stock have no voting rights except as required by law.

Each share of Series A Preferred Stock may
be converted at any time at the election of the holder into a number of shares of common stock determined by dividing (a) an amount
equal to 110% of the sum of