Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 93

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 93
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 earnings to fund the development and growth of our business. In addition, our current loan facility and any future loan arrangements we enter into may contain terms prohibiting or limiting the number or amount of dividends that may be declared or paid on our common stock. As a result, capital appreciation, if any, of our common stock will be your sole source of gain for the foreseeable future.

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Risks Related to the Equity Line of Credit

The sale of a substantial number of ELOC Shares in the public market could adversely affect the prevailing market price of our shares.

We are registering for resale an aggregate of up
to 5,000,000 ELOC Shares, together with 67,162 Commitment Shares that are issuable upon the Investor’s exercise of the Commitment
Warrants issued to it as part of the transaction. If we put in excess of 5,000,000 ELOC shares to the Investor for purchase pursuant to
the ELOC Purchase Agreement, we will be required to register such shares under the Securities Act for resale by the Investor prior to
completing such sale. Sales of a substantial number of our shares in the public market, or the perception that such sales might occur,
could adversely affect the market price of our shares. We cannot predict if and when the Investor may sell such shares in the public markets.
Furthermore, in the future, we may issue additional shares or other equity or debt securities convertible into shares. Any such issuance
could result in substantial dilution to our existing stockholders and could cause our share price to decline.

It is not possible to predict the actual number of ELOC Shares, if any, we will sell under the ELOC Purchase Agreement to the Investor, or the actual gross proceeds resulting from those sales.

On January 23, 2025, we entered into the ELOC Purchase
Agreement with the Investor, pursuant to which the Investor has committed to purchase up to the lesser of (a) $15.0 million of shares
of common stock and (b) 19.99% of the total number of shares of common stock outstanding as of the date of the ELOC Purchase Agreement,
or the Exchange Cap, upon the terms and subject to the conditions and limitations set forth in the ELOC Purchase Agreement, or the “Commitment
Amount”; provided, however, that such limitations will not apply if we obtain stockholder approval to issue additional shares of
common stock. Of such shares, we have registered 5,067