Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 247

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 247
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 to adjustment to the price per share at which the common stock is sold at the Company’s Initial Public Offering if lower than the initial Conversion Price (and was fixed at $ 4.00per share upon the November 25, 2024 initial public offering at $ 4.00per share). Each share of Series A Preferred Stock will automatically be converted on June 15, 2027 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 dividends, by (b) the then-applicable Conversion Price.

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Heritage Distilling Holding Company, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

NOTE 7 — STOCKHOLDERS’ EQUITY / (DEFICIT)(cont.)

Any time on or after June 15, 2025, the Company shall have the right to redeem some or all of the outstanding shares of Series A Preferred Stock from funds legally available therefor, upon at least 30days prior written notice to the holders of the Series A Preferred Stock, at a redemption price per share equal to 110% of the sum of the Stated Amount, plus all accrued and unpaid dividends on such 494,840shares of Series A Preferred Stock (or $ 7,318,436, including accrued dividends of $ 715,044as of March 31, 2025) (or $ 3,116,148on 210,700shares of Series A Preferred Stock including accrued dividends of $ 304,462, excluding the 284,140shares of Series A Preferred Stock subsequently exchanged for Series B Preferred Stock on May 1, 2025, as discussed in Note 14.).

The Company received subscriptions for $ 4,948,478of Series A Preferred Stock (of which $ 1,831,265was from a related party), including $ 2,025,000in cash (of which $ 834,000was from a related party); $ 1,155,000in the form of 525barrels of aged whiskey (with an average value of $ 2,200per barrel and with $ 259,875allocated to barrel fixed assets and $ 895,125allocated to whiskey inventory); $ 110,600was paid by the sale of and transfer to the Company by a related party of an aggregate of 50barrels of premium