Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 11

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 11
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shares were sold on January 23, 2025 in connection with the execution of the ELOC Purchase Agreement and 50,000shares were sold on February 5, 2025. Each such share of Series B Preferred Stock had a purchase price of $10.00 per share with a stated value of $12.00 per share and required the payment of dividends at the rate of 15% per annum of the stated value (or $1.80 per share). Any time following the six month anniversary of the day on which such Series B Preferred Stock was sold, such Series B Preferred Stock was convertible by the ELOC Investor into a number of shares of common stock determined by dividing (a) an amount equal to 110% of the sum of (i) the stated value plus (ii) the amount of all accrued and unpaid dividends, by (b) the then -applicableconversion price, provided that we and the ELOC Investor entered into a letter agreement dated January 23, 2025 under which the ELOC Investor agreed that it would not convert shares of Series B Preferred Stock for a number of shares of common stock that would give it and its affiliates beneficial ownership of an amount of common stock greater than 1% of the total outstanding common stock after giving effect to such conversion. The conversion price of the Series B Preferred Stock issued to the ELOC Investor was originally $22.00 per share, subject to adjustment, which was subsequently adjusted to $9.472 per share based on the price per share at which we subsequently sold shares of our common stock. The Series B Preferred Stock was subject to redemption by us at our option at any time, but subject to any restrictions on such redemption in our credit facilities, at a redemption price equal to the stated value of the Series B Preferred Stock to be redeemed plus any accrued but unpaid dividends thereon. In addition to the Series B Preferred Stock sold to the ELOC Investor pursuant to the ELOC Purchase Agreement, in April 2025, the ELOC Investor purchased 15,000shares of Series B Preferred Stock for $150,000, with a conversion price of $12.20 per share, which was subsequently adjusted to $9.472 per share. All of the shares of Series B Preferred Stock acquired by the ELOC Investor to date have been converted to common stock. In accordance with our obligations under the ELOC Purchase Agreement and the Registration Rights Agreement, dated as of January 23, 2025, between our company and the ELOC Investor