Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 118

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 118
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 conversion price of $10.20 per share of common stock) was from the exchange of prepaid warrants for the purchase of 16,393shares of common stock at a VWAP of $11.20 per prepaid warrant. The 756,854shares of Series B Preferred Stock had conversion prices ranging from $9.472 per share to $22.40 per share and a weighted average conversion price of $9.57 per share. Each share of Series B Preferred Stock had a purchase price of $10.00 per share and a stated value of $12.00 per share, required the payment of dividends at the rate of 15% per annum of the stated value (or $1.80 per share), and was convertible by the holder at any time following the 180 thday following the date of issuance into a number of shares of common stock determined by dividing (a) an amount equal to 110% of the sum of (i) the stated value plus (ii) the amount of all accrued and unpaid dividends, by (b) the then -applicableconversion price. The Series B Preferred Stock was also mandatorily convertible on such basis on the third anniversary of the initial date of issuance of the Series B Preferred Stock. From July to October3, 2025, two investors converted an aggregate of 126,981shares of Series B Preferred Stock into 191,138shares of common stock. As discussed below, in connection with the closing of our offering of our Pre -FundedWarrants, we exchanged an aggregate of 629,873shares of Series B Preferred Stock for 44,742shares of common stock and warrants to purchase an aggregate of 850,124shares of common stock. As of the date hereof, no shares of Series B Preferred Stock are outstanding. 67 In connection with the closing of our offering of Pre -FundedWarrants, we entered into exchange agreements with all but two holders of our Series B Preferred Stock pursuant to which we exchanged 629,873shares of Series B Preferred Stock that were convertible into 894,866shares of common stock for (i) 44,739shares of common stock; (ii) warrants with an exercise price of $0.20 per share that are exercisable to purchase an aggregate of 447,433shares of common stock at the earlier of (a) the date on which the public market price of our common stock closes at $30.00 per share or higher during a regular trading day or (b) on the