Company: HRTX
Filing Date: 2025-09-19
Form Type: DEF 14A
Source: 0001193125-25-209064
Chunk: 14

Company: HERON THERAPEUTICS, INC. /DE/
Filing Date: 2025-09-19
Form: DEF 14A
Chunk 14
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 to comply with Nasdaq Listing Rule 5635(d) to issue the Preferred Stock Issuances. The Board has approved and is seeking the Series A Preferred Stockholder Approval of the Preferred Stock Issuances pursuant to the Purchase Agreement.

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If the Series A Preferred Stockholder Approval is obtained, the Company will be authorized to issue shares of the Company’s Common Stock that could exceed 19.99% of the number of shares of the Company’s Common Stock issued and outstanding prior to such issuance. Any transaction requiring approval by our stockholders under Nasdaq Listing Rule 5635(d) would likely result in a significant increase in the number of shares of our Common Stock outstanding, and, as a result, our current stockholders will own a smaller percentage of our then-outstanding shares of Common Stock. The Preferred Stock Issuances may cause a reduction in the percentage interests of our current stockholders in the voting power, any liquidation value, our book and market value, and in any future earnings.

Further, the issuance or resale of the Preferred Stock Shares could cause the market price of our Common Stock to decline. The increased number of shares issued could discourage the possibility of, or render more difficult, certain mergers, tender offers, proxy contests or other change of control or ownership transactions.

If our stockholders do not approve this Proposal, then the Series A Convertible Preferred Stock will not be convertible into Common Stock, and such Series A Preferred Stock will remain outstanding.

This summary is intended to provide you with basic information concerning the Purchase Agreement, the Series A Convertible Preferred Stock and the possible Preferred Stock Issuances. The terms of the Purchase Agreement, Series A Preferred Stock and the possible Preferred Stock Issuances are complex and only briefly summarized above. For further information, please refer to the descriptions contained in the Company’s Current Reports on Form 8-K filed with the SEC on August 8, 2025 and August 12, 2025 and the documents filed as exhibits to such reports. The discussion herein is qualified in its entirety by reference to such transaction documents filed with the SEC.

The approval of Proposal 2 requires a quorum of the Company’s stockholders. A quorum will be present at the meeting if the holders of a majority of the shares of stock, issued and outstanding and entitled to vote, are present in person or represented by proxy. To approve Proposal 2, holders of a majority of the votes cast on the matter must vote FOR the proposal. Only