Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 168

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 168
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 COMBINATION

Business Combination Agreement
- On June 6, 2023, CERo Therapeutics, Inc. (“Predecessor”), which was incorporated in Delaware on September 23, 2016, and
based in South San Francisco, California, entered into the BCA with PBCE Merger Sub, Inc., a wholly-owned subsidiary of PBAX, and PBAX,
with the surviving operating entity being named CERo Therapeutics Holdings, Inc. (“Successor” or the “Company”),
and such transaction, the “Business Combination” or “Merger”.

The Company is focused on
genetically engineering human immune cells to fight cancer. The Predecessor focused on developing the CERo therapeutic platform and had
not yet begun clinical development or product commercialization. The Company’s efforts will focus on continued product development,
including clinical development, to support regulatory approval to commercialize and subsequent product commercialization.

The BCA was amended on February
5, 2024 and again on February 13, 2024. The Merger closed on February 14, 2024 (the “Closing”), at which time the following
occurred:

    1. The outstanding shares of Predecessor’s preferred stock were converted into 2,208 shares of Common Stock, par value $0.0001 per share (the “Common Stock”), valued at $21,635,926. 

    2. The outstanding shares of Predecessor’s common stock were converted into 292 shares of Common Stock, valued at $2,864,074. 

    3. Each holder of Predecessor’s common stock received a pro rata portion of up to 600 earnout shares of restricted Common Stock, valued at $5,880,000, 500 shares of which are subject to vesting upon the achievement of certain stock price-based earnout targets and 100 shares of which are subject to vesting upon a change of control, respectively. 

    4. Certain holders of Predecessor’s common stock received a pro rata portion of 438 earnout shares of Common Stock, valued at $4.29 million, which became fully vested upon the Closing. 

    5. Certain holders of Predecessor’s common stock and convertible bridge notes received a pro rata portion of 500 earnout shares (the “IND Earnout shares”) of restricted Common Stock, valued at $4,900,000, which vested