Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 106

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 106
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4) | Represents                                                                                                                          
 the average VWAP of our common stock on January 21, 2025 and  January 22, 2025, as reported by Nasdaq of $1.16 per share, less      
 a 5% discount.                                                                                                                      |
| (5) | Represents                                                                                                                          
 the minimum price for which the average price paid for all shares of common stock issued under the ELOC Purchase Agreement must be  
 in order for the sales to be considered “at market” under applicable stock exchange rules and therefore not subject to              
 the 19.99% issuance limit.                                                                                                          |

Purchase and Sale of Series B Preferred Stock Pursuant to the ELOC Purchase Agreement, we have agreed to sell and the Investor has agreed to purchase up to $1,000,000 of our Series B Preferred Stock, of which $500,000, or 50,000 shares, were issued in connection with the execution and delivery of the ELOC Purchase Agreement and $500,000, or 50,000 shares, will be purchased and sold within three trading days following the date the registration statement of which this prospectus forms a part is declared effective by the SEC. Each share of Series B Preferred Stock will have a purchase price of $10.00 per share and a stated value of $12.00 per share, will pay dividends at the rate of 15% per annum of the stated value (or $1.80 per share), and will be convertible by the holder at any time following the 180th day following the date of the ELOC Purchase Agreement (July 23, 2025) 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, provided that we and the Investor have entered into a letter agreement dated January 23, 2025 under which the Investor has agreed that it will not convert shares of Series B Preferred Stock for a number of shares of common stock that would give it and its affiliates beneficial ownership of an amount of common stock greater than 1% of the total outstanding common stock after giving effect to such conversion. The Series B Preferred Stock is also mandatorily convertible on such basis on the third anniversary of the initial date of issuance of the Series B Preferred Stock. The conversion price of the outstanding shares of Series B Preferred Stock is initially $1