Company: HRTX
Filing Date: 2025-09-09
Form Type: PRE 14A
Source: 0000950170-25-113827
Chunk: 14

Company: HERON THERAPEUTICS, INC. /DE/
Filing Date: 2025-09-09
Form: PRE 14A
Chunk 14
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 Series A Convertible Preferred Stock held by several non-affiliated holders pursuant to the Purchase Agreement, which could, under certain circumstances that may occur in the future, exceed 19.99% of the number of shares of the Company’s Common Stock issued and outstanding prior to such issuance (the “Preferred Stock Issuances”).

Nasdaq Rules

Our Common Stock is currently listed on the Nasdaq Capital Market and, as such, we are subject to Nasdaq Marketplace Rules. Nasdaq Listing Rule 5635(d) requires us to obtain stockholder approval prior to the issuance of our Common Stock in connection with certain non-public offerings involving the sale, issuance or potential issuance by the Company of Common Stock and/or securities convertible into or exercisable for common stock equal to 20% or more of the Common Stock outstanding before the issuance at a price less than the “Minimum Price.” Shares of our Common Stock issuable upon the exercise or conversion of warrants, options, debt instruments or other equity securities issued or granted in such non-public offerings will be considered shares issued in such a transaction in determining whether the 20% limit has been reached, except in certain circumstances. The “Minimum Price” is the lower of: (i) the Nasdaq Official Closing Price of the Common Stock; or (ii) the average Nasdaq Official Closing Price of the Common Stock for the five trading days, in either case immediately preceding the signing of a binding agreement.

Given the foregoing, we are seeking the Series A Preferred Stockholder Approval under this Proposal 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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Consequences of Approving or Not Approving the Share Issuance Proposal

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