Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 224

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 8
Chunk 224
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 be used to purchase or otherwise acquire $IP Tokens and for the establishment of the Company’s cryptocurrency treasury operations to the extent consistent with the Company’s investment policy as amended or otherwise modified from time to time. The Company shall not use more than $7.0 million of such proceeds: (i) for the satisfaction of any portion of the Company’s debt (other than payment of trade payables in the ordinary course of the Company’s business and prior practices), (ii) for the redemption of any Common Stock or (iii) for the settlement of any outstanding litigation. In connection with the announcement of the Offering, the Company announced the launch of its digital asset treasury reserve strategy, to be effective upon the closing of the Offering, pursuant to which the Company plans to use $IP Tokens as its primary treasury reserve asset on an ongoing basis. The is no assurance that the Company will be able to close on this transaction, or that if it does close the transaction, that it will be with substantially the same terms as described herein. If the transaction closes, the Company will disclose the final details in a related 8-K filing.Issuer shall have the option, with input from Foundation Investor on timing and amount, on the use of its currently registered and effective ELOC to raise capital for debt reduction and other corporate purpose related to its business.Series B Preferred Stock -- In conjunction with, and contingent upon, the August 11, 2025 Subscription Agreement discussed above,  629,873 shares of Series B Preferred Stock that would have been eligible to be converted into 17,897,336 shares of common stock will be exchanged for: 894,856 shares of common stock; 8,948,676 prepaid warrants with an exercise price of $0.01 per share that are exerciseable for common stock at the earlier of (i) when the common stock closes at $1.50 per share or higher during a regular trading day or (ii) on the 3 month anniversary of the warrant issuance date; and, 8,053,804 prepaid warrants with an exercise price of $0.01 per share that are exerciseable for common stock at the earlier of (i) when the common stock closes at $2.00 per share or higher during a regular trading day or (ii) on the 6 month anniversary of the warrant issuance date. (A related party portion thereof being 299,543 shares of Series B Preferred Stock that would be eligible to be converted into 8,635,864 shares of common stock will