Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 220

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 220
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 of the accrued dividends to be paid in common stock divided
by the Series A Conversion Price (as defined below). We may make payments of dividends in common stock only if the average closing price
of our common stock over the five trading days preceding the dividend payment date is at or above the Series A Conversion Price.

Voting Rights. Holders
of the Series A Preferred Stock have no voting rights except in connection with a proposed amendment to the terms of the Series A Preferred
Stock or as required by law.

Optional Conversion. Each
share of Series A Preferred Stock may be converted at any time at the election of 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 Series A Stated Value plus (ii) the amount of all accrued and unpaid dividends,
by (b) the then applicable Series A Conversion Price. The “Series A Conversion Price” is $4.00 per share, the price per share
at which our common stock was sold in our November 2024 initial public offering. However, a holder (together with its affiliates) may
not convert any of such holder’s shares of Series A Preferred Stock to the extent that the holder (together with its affiliates)
would own more than 4.99% (or, at the election of the holder, 9.99%) of our outstanding shares of common stock immediately after conversion,
as such percentage ownership is determined in accordance with the terms of the Series A Preferred Stock.

Mandatory Conversion. 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 Series A Stated Value plus (ii) the amount of all accrued and unpaid dividends,
by (b) the then-applicable Series A Conversion Price.

Redemption. From and
after June 15, 2025, at the option of our board of directors, we may redeem the shares of Series A Preferred Stock at the time outstanding,
in whole or in part, out of funds legally available therefore. The redemption price per share for shares of Series A Preferred Stock redeemed
will be an amount equal to 110% of the sum of (i) the Series A Stated Value, plus (ii) the amount of the aggregate dividends then accrued
on such share of Series A Preferred Stock and not