Company: CERO
Filing Date: 2025-05-02
Form Type: PRER14A
Source: 0001213900-25-039149
Chunk: 23

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-02
Form: PRER14A
Chunk 23
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 the adverse effect on liquidity that might be caused by a reduced number of shares outstanding; and the costs associated with implementing a reverse stock split. We also believe that the low market price of our Common Stock impairs its acceptability to important segments of the institutional investor community and the investing public. Many investors look upon low -pricedstock as speculative in nature and, as a matter of policy, avoid investment in such stocks. Moreover, the low market price of our Common Stock may have reduced the effective marketability of our shares because of the reluctance of many brokerage firms to recommend low -pricedstock to their clients. Further, a variety of brokerage house policies and practices tend to discourage individual brokers within those firms from dealing in low -pricedstocks. Some of those policies and practices pertain to the payment of brokers’ commissions and to time -consumingprocedures that function to make the handling of low -pricedstocks unattractive to brokers from an economic standpoint. In addition, the structure of trading commissions also tends to have an adverse impact upon holders of low -pricedstock because the brokerage commission on a sale of low -pricedstock generally represents a higher percentage of the sales price than the commission on a relatively higher -pricedissue. In order to provide flexibility, the Board is seeking stockholder approval for a range of reverse split ratios of not less than one -for-twoand not more than one -for-twenty-five. The need for the range is due to the volatility of our stock price, which ranged from a high of $5.85 per share to a low of $0.7300 per share between February 14, 2024 (the date of the Business Combination) and March31, 2025. We believe that enabling the Board of Directors to set the exact reverse split ratio within the stated range will provide us with the flexibility to implement the Reverse Stock Split in a manner designed to maximize the anticipated benefits for our stockholders. In determining whether to implement the Reverse Stock Split and selecting the exchange ratio, the Board of Directors will consider factors such as: •the total number of shares of Common Stock outstanding; •the Nasdaq Capital Market requirements for the continued listing of our Common Stock; •the historical trading price and trading volume of our Common Stock; •the then prevailing trading price and trading volume for our Common Stock; •the anticipated impact of the Reverse Stock Split on the trading price of and market for our Common Stock; •potential financing opportunities; and •prevailing general market and economic