Company: IPST
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001788230-25-000148
Chunk: 18

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 18
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 more than 4.99% of our outstanding common stock after giving effect to such automatic exercise.

Subscription Agreements

The Subscription Agreements contained representations and warranties of us and the Investors, which are typical for transactions of this type. The Subscription Agreements also obligated us to indemnify the Investors and various related parties for certain losses including those resulting from (i) any misrepresentation or breach of any representation or warranty made by us, (ii) any breach of any obligation of ours, and (iii) certain claims by third parties. In addition, the Subscription Agreements contained customary covenants on our part that are typical for transactions similar to the Offering, as well as the following additional covenants:

i. we agreed to use our commercially reasonable efforts to hold a stockholder meeting, at which we would solicit our stockholders’ affirmative vote for approval of our issuance of the Pre-Funded Warrant Shares in accordance with the applicable law and rules and regulations of Nasdaq. The vote by our stockholders at the Special Meeting is intended to satisfy our obligations with respect to this covenant;

ii. we agreed to increase the reserve under our 2024 Equity Incentive Plan, as amended, to 35 million shares and to seek stockholder approval of such increase. The vote by our stockholders on the Incentive Plan Proposal at the Special Meeting is intended to satisfy our obligations with respect to this covenant; and

iii. we agreed that, following receipt of stockholder approval of this proposal at the Special Meeting, we will take all necessary corporate action such that (a) the size of the Board shall be increased or decreased, as necessary, so that it is eight members, (b) at least three and up to five members of the Board designated by Story Foundation shall be appointed to the Board (collectively, the “New Directors”), (c) the Technology and Cryptocurrency Committee of the Board shall be reconstituted as the Digital Assets Committee with an updated committee charter to be adopted, which committee shall be comprised solely of the New Directors and will be chaired by a New Director, (d) certain of the New Directors will be appointed as members of the Audit Committee, the Nominating and Corporate Governance Committee, and the Compensation Committee of the Board, as designated by Story Foundation, and (e) an individual designated by Story Foundation shall be appointed as our Chief Investment Officer.

Registration Rights Agreement

In connection with the Offering, on August 11, 2025, we and the Investors entered into a Registration