Company: CERO
Filing Date: 2025-04-25
Form Type: PRE 14A
Source: 0001213900-25-035562
Chunk: 22

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-25
Form: PRE 14A
Chunk 22
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 our Common Stock. Investment funds may also be reluctant to invest in lower -pricedstocks. Investors may also be dissuaded from purchasing lower -pricedstocks because the brokerage commissions, as a percentage of the total transaction, tend to be higher for such stocks. Moreover, the analysts at many brokerage firms do not monitor the trading activity or otherwise provide coverage of lower -pricedstocks. Giving the Board the ability to effect the Reverse Stock Split, and thereby increase the price of our Common Stock, would give the Board the ability to address these issues if it is deemed necessary. Improve the Perception of Our Common Stock as an Investment Security The Board believes that effecting the Reverse Stock Split is one potential means of increasing the share price of our Common Stock to improve the perception of our Common Stock as a viable investment security. Lower -pricedstocks have a perception in the investment community as being risky and speculative, which may negatively impact not only the price of our Common Stock, but also our market liquidity. Risks Associated with the Reverse Stock Split There are risks associated with the Reverse Stock Split, including that the Reverse Stock Split may not result in an increase in the per share price of our Common Stock. The Company cannot predict whether the Reverse Stock Split will increase the market price for our Common Stock. The history of similar stock split combinations for companies in like circumstances is varied. There is no assurance that: •the market price per share will achieve or maintain the $1.00 minimum bid price requirement for a sufficient period for our Common Stock to be approved for continued listing by Nasdaq; •we would otherwise meet the listing requirements that would allow continued listing of our Common Stock on Nasdaq; •the market price per share of our Common Stock after the Reverse Stock Split will rise in proportion to the reduction in the number of shares of our Common Stock outstanding before the effective time of the Reverse Stock Split (the “Effective Time”); •the Reverse Stock Split will result in a per share price that will attract brokers and investors who do not trade in lower -pricedstocks; •the Reverse Stock Split will result in a per share price that will increase the ability of the Company to attract and retain employees; and •the Reverse Stock Split would promote greater liquidity for our shareholders with respect to their shares. Under recently adopted Nasdaq rules, if the price of our Common Stock fails to satisfy the $1.00 minimum bid price requirement for a 30 consecutive trading day period within one year after effectiveness of the Reverse Stock Split, then the Common Stock would