Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 17

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 17
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Stock (“Series B Preferred Stock”) discussed below and its investment in our initial public offering in November 2024,
no other shares have been issued to the Investor.

Pursuant to the ELOC Purchase Agreement, we have
agreed to sell and the Investor has agreed to purchase up to $1,000,000 of our Series B Preferred Stock, of which $500,000 was purchased
and sold in connection with the execution and delivery of the ELOC Purchase Agreement and $500,000 will be purchased and sold within three
trading days following the date the registration statement of which this prospectus forms a part is declared effective by the SEC. Each
share of Series B Preferred Stock will have a purchase price of $10.00 per share with a stated value of $12.00 per share and will pay
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 is sold, such Series B Preferred Stock will be convertible by the holder 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-applicable conversion price, provided that we and the Investor have entered into a letter agreement
dated January 23, 2025 under which the Investor has agreed that it will 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 outstanding Series B Preferred Stock
issued to the Investor is initially $1.10 per share. The Series B Preferred Stock will be 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.

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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 Investor (the “ELOC Registration Rights Agreement”), we have filed the registration statement of which this prospectus