Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 312

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 312
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150% of their original subscription amount. Such payment shall be in addition to any other amounts otherwise due and shall survive the conversion or repayment of the 2022 and 2023 Convertible Promissory Notes. Accordingly, the $ 10,900,000in 2022 Convertible Promissory Notes subscriptions and $ 5,430,000in 2023 Convertible Promissory Notes subscriptions will be due an aggregate of $ 24,495,000upon the sale of Flavored Bourbon, LLC to an arm’s length third party. 2023 Series — Convertible Whiskey Special Ops 2023 Notes In September 2023, the Company opened a $ 5,000,000Round of convertible notes with a 12.5% interest rate and an August 29, 2026maturity date (the “Whiskey Special Ops 2023 Notes” or the “Whiskey Notes”). Subsequent to December 31, 2023, the Round was increased to $ 10,000,000. As of December 31, 2023, the Company had $ 2,975,000in outstanding principal of Whiskey Special Ops 2023 Notes with: a fair value for the Notes (separately) of $ 1,452,562(of which, $ 800,000in principal and $ 390,607in Fair Value was with a related party); and a fair value for the related Warrant Liability of $ 1,512,692(of which $ 406,774in Fair Value was with a related party). The Whiskey Special Ops 2023 Notes include warrant coverage equal to the Subscription Amount actually paid by the Holder pursuant to the Securities Purchase Agreement, divided by the Exercise Price, as defined as the price per share of the Company’s assumed IPO or, in the event the Company has not consummated the IPO, $ 10.00dollars per share. Total warrants outstanding if calculated using an assumed IPO price of $ 5.00per share as of December 31, 2023 would be 595,000(of which 160,000would be to a related party). The warrants include a mandatory cashless exercise provision whereby any warrants not previously exercised, will be automatically cashlessly exercised, beginning on the third anniversary of their issuance date, on any trading day that the 20-day VWAP of the common stock equals or exceeds a price per share equal to or greater than 125% of the exercise price of