Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 288

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 288
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ment Shares are sold. Such warrants were issued to the Investor as consideration for its entry into the ELOC Purchase Agreement (the “Commitment Warrants”). In February 2025, the Company issued 67,162Commitment Warrants to the ELOC Investor. In February 2025, the Investor exercised the Commitment Warrants for $ 67.

Pursuant to the ELOC Purchase Agreement, the Investor also agreed to purchase $ 1,000,000of the Company’s Series B Preferred Stock, of which $ 500,000will be purchased, and the Company will deliver such Series B Preferred Shares, within twenty four ( 24) hours after the ELOC Registration Statement is filed with the SEC. The second tranche of $ 500,000will be purchased, and the Company will deliver such Series B Preferred shares, within threetrading days following the date the ELOC Registration Statement is declared effective by the SEC. Each share of Series B Preferred Stock will have a purchase price of $ 10.00per share and a stated value of $ 12.00per share, will pay dividends at the rate of 15%per annum of the stated value (or $ 1.80per share), and will be convertible by the holder at any time following the 90 thday following the date of effectiveness of the ELOC Registration Statement. The conversion of Series B Preferred Stock into common stock shall be 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 Conversion Price. The Conversion Price shall be the fixed price equaling the Volume Weighted Average Price on the trading day preceding the date the documents required for the offering are executed. The Series B Preferred Stock will be subject to redemption by the Company at the Company’s option at any time following the ninety (90) day anniversary such Series B Preferred Stock is acquired, but subject to any restrictions on such redemption in the Company’s 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. The shares of common stock that could result from any conversion of Series B Preferred Stock are not being registered in the ELOC Registration Statement. Additional shares of the Company’s Series B Preferred Stock may be sold after the date the ELOC Registration Statement becomes effective. As of January 24, 2025, the Conversion Price was