Company: IPST
Filing Date: 2025-08-18
Form Type: PRE 14A
Source: 0001788230-25-000134
Chunk: 24

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-18
Form: PRE 14A
Chunk 24
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 30, 2025 (or October 18, 2025 if SEC conducts a review of the preliminary proxy statement filed by us in connection with such stockholder meeting).

In addition, if our stockholders do not approve this proposal at the Special Meeting, we will be required to incur the costs of subsequent meetings of stockholders as we are obligated under the Subscription Agreements to call a stockholder meeting no less often than every 90 days following the date of the Special Meeting and each subsequent meeting of stockholders thereafter at which this proposal is not approved to seek stockholder approval of this proposal until such approval is obtained.

Stockholder Support Agreements

Contemporaneously with the execution and delivery of the Subscription Agreements, our officers and directors and certain of our other stockholders, collectively representing at least 40% of the voting power of our outstanding securities, executed and delivered stockholder support agreements pursuant to which such stockholders agreed with us to vote all of the shares of Common Stock outstanding and beneficially owned by them in favor of the Financing Proposal and the Advisory Compensation Proposal.

As of July 23, 2025, the record date for the Special Meeting, stockholders who signed stockholder support agreements with us beneficially owned 6,185,454 shares of common stock, or approximately 40% of the outstanding common stock.

Potential Adverse Effects of the Approval of this Proposal

If this proposal is approved, existing stockholders will suffer substantial dilution in their ownership interests in the future upon the issuance of the shares underlying the Pre-Funded Warrants in the Offering. Specifically, assuming that our stockholders approve this proposal, a total 370,378,890 shares of our common stock will, subject to the Beneficial Ownership Limitation, be automatically exercised for common stock. Assuming the Beneficial Ownership Limitation does not apply, holders of our common stock immediately prior to the Offering would hold approximately 6.6% of our outstanding common stock and holders of the shares of our common stock issued upon exercise of the Pre-Funded Warrants would hold 93.4% of our outstanding common stock.

Executive Officer and Director Interest

Other than the interests of Mr. Stiefel, our Chairman and Chief Executive Officer, and Mr. Varga, a member of our board of directors, each of whom purchased Pre-Funded Warrants in the Offering, none of our directors and executive officers have any substantial interests, directly or indirectly, in the matters set forth in this proposal except to the extent of their ownership of shares