Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 101

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 101
---
 if such shares, when aggregated with all other common stock then beneficially
owned by the Investor and its respective affiliates (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated
thereunder), would result in the Investor beneficially owning common stock in excess of 4.99% of the then-outstanding shares of common
stock (the “Beneficial Ownership Limitation”). Our inability to access a portion or the full amount available under the Purchase
Agreement, in the absence of any other financing sources, could have a material adverse effect on our business or results of operation.

The Purchase Agreement and Registration Rights Agreement contain customary registration rights, representations, warranties, conditions and indemnification obligations by each party. The representations, warranties and covenants contained in such agreements were made only for purposes of such agreements and as of specific dates, were solely for the benefit of the parties to such agreements and are subject to certain important limitations.

ELOC Purchase Agreement

Pursuant to the ELOC Purchase Agreement, the Investor
shall, subject to the restrictions and satisfaction of the conditions in the ELOC Purchase Agreement, purchase from us up to the lesser
of (i) $15.0 million of shares of our common stock and (ii) the Exchange Cap, upon the terms and subject to the conditions and limitations
set forth in the ELOC Purchase Agreement (the “Commitment Amount”); provided, however, that such limitations will not apply
if we obtain stockholder approval to issue additional shares of common stock and, assuming shareholder approved is obtained, we have registered
5,067,162 shares for issuance under the ELOC Purchase Agreement and resale pursuant to this prospectus. The shares of our common stock
that may be issued under the ELOC Purchase Agreement may be sold, subject to the restrictions and satisfaction of the conditions in the
ELOC Purchase Agreement, by us to the Investor at our discretion from time to time from the Commencement Date until the earliest to occur
of (i) the first day of the month next following the 36-month anniversary of the Commencement Date, (ii) the date on which the Investor
shall have purchased the Commitment Amount, (iii) the ninetieth day after the date on which, pursuant to or within the meaning of any
bankruptcy law, we commence a voluntary case or any person commences a proceeding against us, in each case that is not discharged or dismissed
prior to such nineti