Company: CMCT
Filing Date: 2025-06-27
Form Type: DEF 14A
Source: 0000908311-25-000052
Chunk: 52

Company: Creative Media & Community Trust Corp
Filing Date: 2025-06-27
Form: DEF 14A
Chunk 52
---
 such holder’s shares of Preferred Stock at a redemption price of $25.00 per share, plus an amount equal to all accrued but unpaid dividends, if any, to and including the redemption date, subject to the terms of such Preferred Stock set forth in the Charter. This holder redemption price may be paid in cash or in shares of Common Stock (based on the VWAP of the Common Stock for the 20

<div align='center'>30</div>

trading days immediately preceding the applicable redemption date, with each such term as defined in the Charter), at the Company’s option. Recently, the Company has chosen to pay such redemptions in shares of Common Stock in order to increase its common equity as a percentage of assets and improve its liquidity.

In addition, the Company has in the past exercised its right to redeem shares of Preferred Stock at its option (subject to the terms of the Preferred Stock set forth in the Charter) and pay the redemption price in shares of Common Stock, and the Company may do so again in the future.

We believe that the significant volume of Common Stock issued to meet redemption requests and in connection with redemptions at the Company’s option has placed significant downward pressure on the bid price of our Common Stock. If our Common Stock price declines, more shares of Common Stock are issuable under the 20-day VWAP formula, which in turn may place further downward pressure on the bid price of our Common Stock.

The proposed 1:10 Reverse Stock Split is intended to adjust the bid price of the Common Stock upward in an effort to maintain compliance with Nasdaq’s Minimum Bid Price Rule. Our Board believes that that the 1:10 Reverse Stock Split ratio of 1:10 is in the best interest of the Company and that such ratio will improve the price level of our Common Stock so that we are able to comply with the Nasdaq Minimum Bid Price Rule. However, we cannot assure you that after the 1:10 Reverse Stock Split the market price of our Common Stock will increase proportionately to reflect the ratio for the 1:10 Reverse Stock Split, that the market price of our Common Stock will not decrease to its pre-split level, that our market capitalization will be equal to the market capitalization before the 1:10 Reverse Stock Split or that we will be able to maintain our listing on Nasdaq.

#### Consequences of Not Approving this Proposal
If Proposal 6 is not approved by stockholders, it could result in material adverse consequences for the Company, including potential