Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 40

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 40
---
| ● | we                                                                                                                       
 may not be able to recover the cost of the investment in a way that makes the acquisition profitable or a good decision; |

| 27 |

| ● | we                                                                                                                                   
 may suffer reputational harm in the communities in which Thinking Tree Spirits is located from people who object to a local business 
 being acquired;                                                                                                                      |
| ● | we                                                                                                                                   
 may not have been given all relevant information during our due diligence process, which could have affected our decision to proceed 
 with the acquisition or could have allowed us to renegotiate the purchase price or other terms;                                      |
| ● | we                                                                                                                                   
 are obligated by certain earn-out provisions of our purchase contract to issue to the sellers of Thinking Tree Spirits additional    
 shares of our common stock over the next three years if the Thinking Tree Spirits brands grow in revenue over that period, which     
 could lead to dilution for all other shareholders; and                                                                               |
| ● | as                                                                                                                                   
 the purchaser in the acquisition, we may be subject to litigation related to certain acts of Thinking Tree Spirits or its management 
 that occurred prior to the acquisition, including wrongful termination or age discrimination claims, securities fraud, whistleblower 
 issues or other matters, known or unknown to us at the time.                                                                         |

Certain former Thinking Tree Spirits shareholders opposed our acquisition of that company and filed a notice exercising dissenters’ rights. Two of the dissenters claims have been resolved and we are awaiting final resolution of the third.

In July 2024, three Thinking Tree Spirits shareholders provided Thinking Tree Spirits a notice of dissent to our proposed acquisition of Thinking Tree Spirits on the terms set forth in our acquisition agreement for that company. We have subsequently settled with two of the three TTS dissenters and are awaiting final resolution with the third. The third dissenter initiated litigation on April 16, 2025 seeking payment under the Oregon dissenters rights statute.

The outcome of any litigation related to the remaining open dissenter is inherently uncertain and it is possible that the plaintiffs in any such litigation will prevail no matter how vigorously we defend ourselves or the fact that we provided them with a fair and reasonable offer. In such case, the judicially-determined value of the shares of the dissenting shareholders could exceed the per share value of the consideration we paid for Thinking Tree Spirits, which could result in the payment of significant compensatory damages by our company. Any such adverse decision in such actions could have a material adverse effect on our financial position and liquidity and on our business and results of operations. In addition