Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 309

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 309
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 and unpaid interest could automatically convert into common stock at the lesser of $ 143.20, or a 20% discount off the price per share of common stock sold in private offering. In 2021, all but one of the notes were converted into shares of the Company at a discounted conversion price of $ 75.00per share. As of December 31, 2021, the Company had one investor that did not elect to convert, with a convertible note balance of $ 450,000and accrued interest of $ 49,425. This remaining note plus accrued interest were paid in full in 2022. 2022 Convertible Promissory Notes During April 2022 through December 2022, the Company issued multiple unsecured convertible promissory notes (the “2022 Notes”) with aggregate net cash proceeds of approximately $ 10,740,000and aggregate principal sum of $ 14,599,523to various new and existing investors, including $ 4,675,000in cash proceeds and $ 6,311,250in principal to a related party (See Note 14). In February 2023, the Company issued oneconvertible note to an existing investor under the terms of the 2022 Notes with net cash proceeds of $ 260,000and a principal sum of $ 351,000. In May 2023, the Company agreed with one investor to transfer their 2022 Note with a principal sum of $ 135,000to instead be included under their 2023 Round 3 Note (for a total Round 3 Note of $ 2,160,000for said investor). As of December 31, 2023, the cash proceeds and principal sum of the 2022 Notes totaled $ 10,900,000and $ 14,815,523, respectively, including $ 4,675,000of cash proceeds and $ 6,311,250of principal to a related party. The 2022 Notes have a maturity date of July 31, 2024. The 2022 Notes are convertible, in whole or in part, into shares of the Company’s common stock at a conversion price of $ 157.89per share at the option of the convertible noteholders, at any time and from time to time. If the Company consummates an IPO or a merger with a SPAC (a “deSPAC merger”), the unpaid and accrued balances of the 2022 Notes and the