Company: PIII
Filing Date: 2025-02-20
Form Type: PRE 14A
Source: 0001140361-25-005269
Chunk: 19

Company: P3 Health Partners Inc.
Filing Date: 2025-02-20
Form: PRE 14A
Chunk 19
---
 Stock, $0.0001 par value per share (“Preferred Stock” and together with our common stock, our “Capital Stock”).

Although the number of authorized shares of our Capital Stock will not change as a result of the Reverse Stock Split, the number of shares of our common stock issued and outstanding will be reduced in proportion to the ratio selected by the Board. Thus, the Reverse Stock Split will effectively increase the number of authorized and unissued shares of our common stock available for future issuance by the amount of the reduction effected by the Reverse Stock Split.

If the proposed Reverse Stock Split amendments are approved, all or any of the authorized and unissued shares of our common stock may be issued in the future for such corporate purposes and such consideration as the Board deems advisable from time to time, without further action by the stockholders of our Company and without first offering such shares to our stockholders. When and if additional shares of our common stock are issued, these new shares would have the same voting and other rights and privileges as the currently issued and outstanding shares of common stock, including the right to cast one vote per share.

Because our stockholders have no preemptive rights to purchase or subscribe for any of our unissued shares of common stock, the future issuance of additional shares of common stock will reduce our current stockholders’ percentage ownership interest in the total outstanding shares of common stock. In the absence of a proportionate increase in our future earnings and book value, an increase in the number of our outstanding shares of common stock would dilute our projected future earnings per share, if any, and book value per share of all our outstanding shares of common stock. If these factors were reflected in the price per share of our Class A common stock, the potential realizable value of a stockholder’s investment could be adversely affected. An issuance of additional shares could therefore have an adverse effect on the potential realizable value of a stockholder’s investment.

Effect on Outstanding Equity Incentive Plans

The Company maintains the 2021 Incentive Award Plan (the “2021 Plan”) and the 2024 Employment Inducement Incentive Award Plan (the “2024 Inducement Award Plan” and together with the 2021 Plan, the “Plans”), which are designed primarily to provide stock-based incentives to individual service providers of the Company. As of January 31, 2025, options to purchase 19,516,743 shares of our Class A common stock and 8,037,497 restricted stock units were outstanding