Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 8

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 8
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 By building brand recognition for key products in selected regions or states through DtC sales, we can better support the wholesale launch, marketing and product pull -through of those products in partnership with wholesalers in those targeted states. While DtC sales result in singular high -margin sales, growing volume through wholesale distribution is the most efficient way to drive large -scale growth across retail chains. Third, we are focused on expanded growth of our collaboration with Native American tribes through the TBN model we created. In concert with tribal partners, this sales channel includes Heritage -branded micro production hubs, Heritage -branded stores and tasting rooms and the sale of our products and new tribally -branded products. In the typical TBN collaboration, the tribes will own these businesses and we will receive a royalty on gross sales through licenses we grant to use our brands, products, recipes, programs, IP, new product development, on -going compliance support and the other support we provide. The TBN is expected to form a network of regional locations that will support product trials and sampling, and will generate sales of finished spirits for retail and wholesale distribution. We expect that, as the brands grow and the TBN footprint expands, 3 there will be an important synergy with increased adoption and growth through our wholesale channels in the regions where the TBN locations are driving trial and awareness. Similarly, as demand for our products grows through our wholesale channels, there should be a positive effect on the demand for the products produced by our tribal partners. Recent Developments The Equity Line of Credit.On January 23, 2025, we entered into a Securities Purchase Agreement dated as of January 23, 2025 (the “ELOC Purchase Agreement”) between our company and C/M Capital Master Fund LP, a Delaware limited partnership (the “ELOC Investor”) establishing a committed equity facility (the “Facility” or “Equity Line of Credit”). Pursuant to and subject to the conditions set forth in the ELOC Purchase Agreement, we have the right from time to time at our option to direct the ELOC Investor to purchase shares of our common stock (the “ELOC Shares”) up to the lesser of (i) a maximum aggregate purchase price of $15,000,000 (the “Maximum Commitment Amount”), and (ii) the Exchange Cap (as defined in the ELOC Purchase Agreement), subject to certain limitations and conditions set forth in the ELOC Purchase Agreement. Sales of the ELOC Shares to the ELOC Investor under the ELOC Purchase Agreement