Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 15

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 15
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 per share), and is convertible by the holder at any time 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-applicable conversion price. The Series A Preferred Stock is also mandatorily convertible on such basis on June 15, 2027, or at our option at any time on or after June 15, 2025. The conversion price of the Series A Preferred Stock is initially $4.00 per share. The warrants issued in our November 2024 initial public offering had an exercise price equal to $4.00 per share and will expire on June 15, 2029; however, at any time after June 15, 2027, the warrants will automatically exercise on a cashless basis if our common stock has traded for five consecutive trading days at or above an amount equal to 125% of the exercise price of the warrants.

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In September 2024, we completed a private placement
to two accredited investors of 93,789 shares of our Series A Preferred Stock that did not include any related warrants in exchange for
the cancellation of warrants to purchase 510,315 shares of common stock at $6.00 per share. The value assigned to the cancelled warrants
was determined to be $937,959, or $1.838 per warrant, using a Black-Scholes Valuation model with an estimated stock price of $5.00 and
an exercise price equal to $6.00 per share.

Initial Public Offering of Common Stock.On November 25, 2024, we completed our initial public offering of our common stock and sold an aggregate of 1,687,500 shares
of common stock at an initial public offering price of $4.00 per share. On November 25, 2024, we also sold common warrants (the “Common
Warrants”) to purchase an aggregate of up to 382,205 additional shares of common stock in a concurrent private placement to certain
existing security holders. The Common Warrants have an exercise price equal to $0.01 per share and were sold for a price per Common Warrant
equal to $3.99, the price per share at which the common stock was sold in our initial public offering less $0.01. The gross proceeds
we received from our