Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 109

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 109
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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 $1.10 per share. The conversion price for additional shares of Series B Preferred Stock we may issue will
be, with respect to a share of Series B Preferred Stock, an amount equal to the VWAP of our common stock on the trading day immediately
preceding the first date on which such share of Series B Preferred Stock is issued. The Series B Preferred Stock will be subject to redemption
by us at our option at any time, but subject to any restrictions on such redemption in our credit facilities, at a redemption price equal
to the stated value of the Series B Preferred Stock to be redeemed plus any