Company: CERO
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001213900-25-004742
Chunk: 359

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 359
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in our Trust Account in connection with its initial business combination, a liquidation or certain other events, (ii) were shares
of Class A common stock issued upon the conversion of an equal number of shares of our Class B common stock acquired by Sponsor prior
to our IPO, which shares of Class A common stock did not have redemption rights, and (iii) were shares of Class A common stock
included in the private placement units acquired in the private placement by the Sponsor and other investors concurrent with our IPO,
which shares of Class A common stock did not have redemption rights. On February 14, 2024, we made a series of payments of an aggregate
of $ to holders of redeemed Class A common stock (an aggregate of $ per redeemed share).

On February 13, 2024, the
parties entered into Amendment No. 2 to the Business Combination Agreement to create two additional pools of earnout shares of Class A
common stock, one pool of which contained shares, which were fully vested at closing of the Business Combination and which were
issued as an offset to the agreement by Sponsor to forfeit an offsetting number of shares, and one pool of which will contain
shares, which will be fully vested upon the achievement of certain regulatory milestone-based earnout targets and make certain other technical
changes to the timing and process for issuance of the shares of Class A common stock subject to the other earn-out conditions
set forth in the Business Combination Agreement.

The Business Combination
closed on February 14, 2024, at which time the following occurred:

| 1. | Each                                                                                                                             
 outstanding share of the Company’s preferred stock was converted into the number of shares of Class A common stock calculated by 
 dividing the liquidation preference by $10.00.                                                                                   |

| 2. | Each outstanding share of the Company’s common stock was converted into the number of shares of Class A common stock calculated by multiplying each share by the Exchange Ratio. The Exchange Ratio of 0.064452 was calculated by first subtracting the aggregate liquidation preference of outstanding preferred shares from $50 million, then dividing the result by the number of shares of the Company’s common stock outstanding and dividing by $10.00 per share. |

| 3. | Each holder of the Company’s common stock received a pro rata portion of up to 1.2 million Earnout Shares, 1,000,000 of which are subject to vesting upon the achievement of certain stock price-based earn