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Heritage Distilling Holding Company, Inc. (NASDAQ:CASK) reported Thursday that it has sold a total of 11,962,810 shares of its common stock to C/M Capital Master Fund, LP, generating aggregate gross proceeds of approximately $4,816,234. The company, which according to InvestingPro data has been quickly burning through cash with a negative free cash flow of $10.7 million in the last twelve months, currently has a market capitalization of $6.6 million. The sales were made under a previously disclosed securities purchase agreement, according to a statement in a filing with the Securities and Exchange Commission.
The company disclosed that between July 15 and July 30, it sold 10,525,357 shares to the investor for gross proceeds of about $4,087,161. The shares were sold at prices ranging from $0.32 to $0.45 per share. Currently trading at $0.53, the stock has shown significant volatility, with InvestingPro analysis indicating the company is undervalued based on its Fair Value calculations. These transactions are part of a broader agreement, announced in January, that allows Heritage Distilling to sell up to $15 million in newly-issued common stock to C/M Capital Master Fund, subject to certain conditions.
As of July 30, Heritage Distilling had 23,623,852 shares of common stock issued and outstanding.
The company stated that the investor is an accredited investor and that the shares were issued and sold in reliance on exemptions from registration requirements under the Securities Act of 1933. Heritage Distilling has registered the resale by the investor of 5 million shares on a Form S-1 registration statement (No. 333-284509) and an additional 10 million shares on a separate Form S-1 registration statement (No. 333-288051).
This information is based on a press release statement included in a filing with the Securities and Exchange Commission.
In other recent news, Heritage Distilling Holding Company, Inc. has announced several innovative developments. The company is embracing cryptocurrency by introducing a Cryptocurrency Treasury Reserve Policy aimed at diversifying its corporate treasury and sales strategies. As part of this initiative, Heritage Distilling plans to launch Bitcoin Bourbon™, a limited-edition bourbon that will allow customers to make purchases using Bitcoin. This makes Heritage Distilling the first craft spirits company to accept cryptocurrency as a form of payment. Additionally, the company is exploring the integration of crypto payments within its supply chain, starting with Canadian suppliers. The new product, Bitcoin Bourbon, will be released at 106.15 proof, a number that resonates with the Bitcoin community. CEO Justin Stiefel highlighted the blend of traditional whiskey-making with modern digital commerce that this product represents. These steps reflect Heritage Distilling’s strategic move into the digital currency space.
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