IP Strategy Announces 1-For-20 Reverse Stock Split, Effective November 5, 2025

Heritage Distilling Holding Company Inc. d/b/a IP Strategy (NASDAQ:IPST) (the "Company"), the first company to adopt a treasury reserve policy centered on the $IP token, today announced that its Board of Directors has approved a 1-for-20 reverse stock split of the Company's common stock. The reverse stock split is expected to become effective at 12:01 a.m. on November 5, 2025, and the Company's common stock is expected to begin trading on the Nasdaq Capital Market on a split-adjusted basis when the market opens on November 5, 2025, under its existing ticker symbol, "IPST." The new CUSIP number will be 42727R 203.

Upon effectiveness, every 20 shares of the Company's issued and outstanding common stock will be automatically combined into one share of common stock. The reverse stock split will not affect the number of authorized shares of common stock or preferred stock, the par value of the common stock, or the rights of stockholders, except for adjustments resulting from the treatment of fractional shares. No fractional shares will be issued; stockholders who would otherwise receive a fractional share will be entitled to a cash payment in lieu thereof equal to the product of the closing sale price of the common stock on the Nasdaq Capital Market on November 4, 2025, and the amount of the fractional share. The reverse stock split will apply to the shares of common stock issuable upon the exercise of outstanding warrants and stock options, with proportionate adjustments to be made to the exercise prices thereof.

The reverse stock split is intended to bring the Company into compliance with Nasdaq's minimum bid price requirement and to improve the marketability and liquidity of IP Strategy's common stock. At the Special Meeting of Stockholders held on September 18, 2025, the Company's stockholders authorized the Company's board of directors to effect a reverse stock split with a ratio ranging from 1-for-5 up to 1-for-20.