Company: IPST
Filing Date: 2025-06-03
Form Type: 8-K
Source: 0001788230-25-000105
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Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-03
Form: 8-K
Item: Item 3.02
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Item 3.02 Unregistered Sales of Equity Securities.

Between February 21, 2025 and May 29, 2025, Heritage Distilling Holding Company, Inc. (the “ Company”) entered into a subscription agreement and a securities purchase agreement (collectively, the “ Purchase Agreements”) with 14 accredited investors (each, an “ Investor”), pursuant to which the Company, subject to the restrictions and satisfaction of the conditions in the applicable Purchase Agreement, sold in a private placement to such accredited investors an aggregate of 642,137 shares of the Company’s Series B Convertible Preferred Stock, par value $0.0001 per share (the “ Series B Preferred Stock”) for aggregate gross proceeds of $6,421,377, including $392,000 (39,200 shares with a conversion price of $0.56 per share of common stock) from the exchange of 700,000 prepaid warrants at $0.001 per prepaid warrant and $4,092,567 (or 409,256 shares) from the exchange of 284,140 shares of Series A Preferred and warrants to purchase 116,263 shares of common stock at $4.00 per share. The 642,137 shares of Series B Preferred Stock purchased since February 21, 2025 have conversion prices ranging from $0.4736 per share to $1.17 per share and a weighted average conversion price of $0.47 per share. In connection with the sale of such shares of Series B Preferred Stock, we issued to certain purchasers of such shares five-year warrants to purchase an aggregate of 911,225 shares of common stock at $0.01 per share, and 327,868 shares at $0.001 per share (collectively, the “ Warrants”). At their current conversion prices, the 642,137 shares of Series B are convertible into 16,349,963 shares of common stock, including accrued dividends through June 2, 2025.

Series B Convertible Preferred Stock

In January 2025, the Company’s board of directors designated 750,000 shares of our authorized shares of preferred stock as Series B Preferred Stock. The Series B Preferred Stock has a stated value of $12.00 per share (the “ Series B Stated Value”).

Dividends. The holders of Series B Preferred Stock are entitled to receive, out of funds legally available therefor, cumulative dividends on the Series B Preferred Stock at the rate of 15% per annum of the