Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 307

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 307
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 we settled with
one of the three TTS dissenters and we sent the remaining two dissenters the statutorily required payment offers and documentation to
attempt to wind down the dissenters process. The statutorily required thirty (30) day review period for those offers passed on January
6, 2025 with one objection from one of the remaining dissenters. Nevertheless, we believe the matter to be concluded, but there is a risk
either or both of the late responding dissenters could attempt to extract more value than the offer that was sent to them. It is unclear
under Oregon law how successful they would be in such attempts since the review period has passed. As a result of netting out the amount
paid to such dissenters from the makeup provisions of our acquisition agreement with the remaining TTS shareholders, we assume we will
issue the remaining TTS shareholders an additional 83,407 shares of our unregistered common stock which will be subject to lockup agreements
that do not allow such shares to be sold until after the one hundred and eighty (180) day anniversary of the date of their grant. The
granting of such shares shall occur after this offering becomes effective after we have been advised by outside counsel that the risk
of a dissenter reopening the matter has passed or is nonmaterial.

In October 2024, the Company sold 250 barrels
of aged whiskey to a related party for $166,667. Under the terms of the sale, in the event the related party resells the barrels back
to the Company, the resell prices shall be the price paid per barrel under the agreement plus a 15% simple annual interest rate of 1.25%
per month from the date the related party purchased the barrels from the Company. The Company also agreed to store the barrels for the
related party at no fee until the related party sells the barrels to either the Company or a third party.

In October 2024, the holders of the 2022 and 2023
Convertible Promissory Notes that had entered into a Subscription Exchange Agreement to exchange into equity the value of their 2022 and
2023 Convertible Notes (with all accrued interest and fees through, and effective as of, June 30, 2023) extended the date by which the
holders would have the right to exchange the common stock issued under the Subscription Exchange Agreement for promissory notes (the “New
Notes”) on terms substantially similar to the Notes exchanged (contingent upon