Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 117

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 117
---
, with certain investors receiving an aggregate of: 852,399 warrants to purchase common stock at $0.01 per share; and 327,868 warrants to purchase common stock at $0.001 per share, for aggregate gross proceeds of $7,568,557, of which: $2,791,810 or 279,181shares was from cash investors; $4,092,567 or 409,256shares of Series B Preferred Stock was from the exchange of 284,140shares of Series A Preferred Stock and183,122 related warrants to purchase common stock at $4.00 per share ; and, $559,180 (55,917shares with a conversion price of $0.56 per share of common stock) was from the exchange of 1,027,868 warrants at a VWAP of $0.54 per prepaid warrant. Each share of Series B Preferred Stock has 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 180 thday following the date of issuance 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 -applicableconversion price, provided, however, that we and the holder of 100,000shares of Series B Preferred Stock have entered into a letter agreement dated January 23, 2025 under which the holder 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. As discussed below, in connection with the closing of our offering of our Pre -FundedWarrants discussed above, we exchanged (i) an aggregate of 629,873shares of Series B Preferred Stock for 894,856shares of common stock and warrants to purchase an aggregate of 17,002,480shares of common stock, and (ii) an aggregate of 56,462shares