Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 386

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 386
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 Company completes a business combination, subject to the terms
of the underwriting agreement.

Business Combination Agreement

On June 4, 2023, the Company entered into
the Business Combination Agreement.

At the Effective Time, (i) each outstanding
share of CERo common stock will be cancelled and converted into (a) the right to receive a number of shares of Class A common
stock, equal to $50,000,000, minus the Aggregate Liquidation Preference, divided by the Fully Diluted
Company Capitalization, divided by the Exchange Ratio and (b) the right to receive Earnout Shares; (ii) each
outstanding CERo option will be converted into an option to purchase a number of shares of Class A common stock, equal to (A) the
number of shares of CERo common stock subject to such option immediately prior to the Effective Time, multiplied by
(B) the Exchange Ratio, at an exercise price per share equal to the current exercise price per share for such option divided by
the Exchange Ratio; in each case, rounded down to the nearest whole share, and rounded up to the nearest whole cent in the case of the
exercise price of the CERo options; (iii) each outstanding share of CERo preferred stock, will be converted into a number of shares
of Class A common stock, equal to the number of shares of Class A common stock obtained by dividing the liquidation
preference thereof by $10.00 and the contingent right to receive such holder’s Earn-Out Pro Rata Portion, and (iv) each
CERo warrant outstanding as of immediately prior to the Effective Time will be converted into a warrant to acquire a number of shares
of Class A common stock equal to the number of shares of CERo preferred stock subject to the corresponding warrant immediately prior
to the Effective Time, multiplied by the Aggregate Liquidation Preference of such underlying shares of CERo preferred
stock, and divided by $10.00, with the exercise price per share for such warrant equal to (A) the current aggregate
exercise price of such warrant (the current exercise price per share of CERo preferred stock applicable to the corresponding warrant
immediately prior to the Effective Time, multiplied by the number of shares of CERo preferred stock issuable upon exercise
thereof), divided by (B) the number of shares of Class A common stock issuable upon exercise thereof. Subject
to certain exceptions, such terms and conditions applicable to