Company: IPST
Filing Date: 2025-06-10
Form Type: DEF 14A
Source: 0001788230-25-000111
Chunk: 44

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-10
Form: DEF 14A
Chunk 44
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 Inc. |

#### PROPOSAL FIVE - SPA SHARE ISSUANCE PROPOSAL
Approval, for Purposes of Complying With Nasdaq Listing Rule 5635, of the Issuance of Shares of Common Stock Pursuant Upon Conversion of Series B Preferred Stock and the Exercise of Warrants

### Overview
You are being asked to consider and vote upon a proposal that provides for the potential issuance of shares of common stock in excess of 20% of our outstanding shares of our common stock pursuant to subscription agreements and securities purchase agreements dated January 23, 2025 through May 29, 2025 (collectively, an “SPA”) with certain accredited investors, and the conversion of the shares of our Series B Preferred Stock issued under an SPA and the exercise of the warrants (each a “Warrant”) issued pursuant to an SPA. The information set forth in this SPA Share Issuance Proposal is qualified in its entirety by reference to the full text of the securities purchase agreements and the subscription agreements, the forms of which are attached as Exhibits 10.1 and 10.2, respectively, to our Current Report on Form 8-K filed with the SEC on June 3, 2025. Stockholders are urged to carefully read these documents.

Between January 23, 2025 and May 29, 2025, we entered into SPAs with 14 accredited investors for the issuance of an aggregate of 796,419 shares of Series B Preferred Stock that are convertible into an aggregate of 17,571,508 shares of common stock at conversion prices between $0.4736 and $1.17 per share and a weighted average conversion price of $0.51, including accrued dividends and any bonuses thereon. In addition, pursuant to 12 SPAs, we also issued to the purchasers Warrants to purchase an aggregate of 911,225 shares of common stock at an exercise price of $0.01 per share and a negotiated 327,868 in prepaid warrants to purchase common stock at $0.001 per share. In June, our Board authorized an increase in the authorized shares of Series B Preferred Stock from 750,000 shares up to 850,000 shares in the aggregate, and we may sell additional shares of Series B Preferred Stock in the future, which shares may be sold with or without the sale and issuance of additional Warrants. Each SPA contains customary representations, warranties, and covenants of our Company and the purchaser.

Series B Convertible Preferred