Company: SPRB
Filing Date: 2025-06-06
Form Type: DEFA14A
Source: 0000950170-25-083045
Chunk: 13

Company: SPRUCE BIOSCIENCES, INC.
Filing Date: 2025-06-06
Form: DEFA14A
Chunk 13
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 by the threat of any hostile takeover attempt (nor is the Board currently aware of any such attempts directed at us), stockholders should be aware that approval of this proposal could facilitate future efforts by us to deter or prevent changes in control, including transactions in which the stockholders might otherwise receive a premium for their shares over then current market prices.

In addition, the Board may authorize the issuance of the remaining authorized and unissued shares without further stockholder action for a variety of purposes, except as such stockholder approval may be required in particular cases by our Certificate of Incorporation, applicable law, or the rules of any stock exchange on which our securities may then be listed. The issuance of additional shares would be dilutive to our existing stockholders and may cause a decline in the trading price of our common stock.

The market price of our common stock will also be based on the performance of the Company and other factors, some of which are unrelated to the number of shares outstanding. If the Reverse Stock Split is effected and the market price of our common stock declines, the percentage decline as an absolute number and as a percentage of the overall market capitalization of the Company may be greater than would occur in the absence of the Reverse Stock Split.

Principal Effects of a Reverse Stock Split

The table below illustrates certain, but not all, possible reverse stock split ratios, together with the implied number of issued and outstanding shares of the common stock resulting from implementation of the Reverse Stock Split based on 42,231,285 shares of the common stock outstanding as of the Record Date.

|                                                              |     Current | After Reverse Stock Split if 50:1 Ratio is Selected(1) | After Reverse Stock Split if 60:1 Ratio is Selected(1) | After Reverse Stock Split if 70:1 Ratio is Selected(1) | After Reverse Stock Split if 80:1 Ratio is Selected(1) | After Reverse Stock Split if 90:1 Ratio is Selected(1) | After Reverse Stock Split if 100:1 Ratio is Selected(1) |
| Shares of common stock issued and outstanding                |  42,231,285 |                                                844,625 |                                                703,854 |                                                603,304 |                                                527,891 |                                                469,236 |                                                 422,312 |
| Common stock issuable upon exercise of stock options         |   3,221,657 |                                                 64,433 |                                                 53,694 |                                                 46,023 |                                                 40,270