Company: CMCT
Filing Date: 2025-08-27
Form Type: DEF 14A
Source: 0001104659-25-083990
Chunk: 17

Company: Creative Media & Community Trust Corp
Filing Date: 2025-08-27
Form: DEF 14A
Chunk 17
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 Company’s equity incentive plan.

Except for adjustments that may result from the treatment of fractional shares of Common Stock, as described below, because the 1:4 Reverse Stock Split would apply to all issued shares of Common Stock, the implementation of the 1:4 Reverse Stock Split would not alter the relative rights and preferences of our existing stockholders nor affect any stockholder’s proportionate equity interest in the Company. For example, a holder of approximately two percent (2%) of the voting power of the outstanding Common Stock immediately prior to the effectiveness of the 1:4 Reverse Stock Split will generally continue to hold approximately two percent (2%) of the voting power of the outstanding Common Stock immediately thereafter. Moreover, the number of stockholders of record of our Common Stock will not be affected by the 1:4 Reverse Stock Split.

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The Proposed 1:4 Amendment, if adopted, will not change the terms of our Common Stock or Preferred Stock. Upon effectiveness of the 1:4 Reverse Stock Split, the shares of Common Stock will have the same voting rights and rights to dividends and other distributions and will be identical in all other respects to the Common Stock now authorized. Following the 1:4 Reverse Stock Split, the Common Stock will remain fully paid and non-assessable.

Upon the effectiveness of the 1:4 Reverse Stock Split, the par value of our Common Stock will increase proportionately to the 1:4 ratio of the 1:4 Reverse Stock Split. However, the Board will exercise its right under Section 2-605(a)(2) of the MGCL to thereafter immediately reduce the resulting par value of the post-split Common Stock so that it will remain at $0.001 per share.

Effects on the Number of Authorized Shares.

The total number of shares of capital stock that we are authorized to issue will not be affected by the 1:4 Reverse Stock Split and will remain at one billion (1,000,000,000) shares of stock, consisting of nine hundred million (900,000,000) shares of Common Stock and one hundred million (100,000,000) shares of preferred stock, par value $0.001 per share. Although the number of authorized shares of capital stock will not change as a result of the 1:4 Reverse Stock Split, the number of shares of Common Stock issued and outstanding will be reduced in proportion to the 1:4 ratio of the 1:4 Reverse Stock Split. Thus