Company: PTPI
Filing Date: 2025-03-14
Form Type: PRER14A
Source: 0001104659-25-024012
Chunk: 29

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-03-14
Form: PRER14A
Chunk 29
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 Warrants
and may be transferred separately immediately thereafter.

Exercise Price Adjustments

The exercise of the Series B Warrants can be reduced by operation
of Share Combination Event Adjustment provision, subject to a floor price of $0.1465 prior to the Stockholder Approval Date and a floor
price of $0.0586 on the Stockholder Approval Date (such floor price then in effect, the “Series B Floor Price”).

Cashless Exercise and Zero Exercise Price

If, at the time a holder exercises its Series B Warrants, a registration
statement registering the issuance of the shares of Common Stock underlying the Series B Warrants under the Securities Act is not
then effective or the prospectus contained therein is not available for the issuance of such shares, then the Series B Warrant may
be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the holder shall be entitled to
receive a number of shares equal of our Common Stock in accordance with the formula set forth in the Series B Warrant.

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Holders may also effect a “zero exercise price” at any
time while the Series B Warrants are outstanding following the Initial Exercise Date. Under the zero exercise price option, a holder of
a Series B Warrant, has the right to receive an aggregate number of shares for no cash consideration equal to the product of (i) the aggregate
number of shares of Common Stock that would be issuable upon a cash rather than a cashless exercise of the Series B Warrant and (ii) 3.0,
and accordingly, would be entitled to receive more shares under the zero exercise price feature than the cashless exercise feature. Accordingly,
it is highly unlikely that a holder of the Series B Warrants would wish to pay an exercise price in cash to receive one share of Common
Stock when they could instead choose the zero exercise price option and pay no cash to receive three shares of Common Stock. As a result,
we will likely not receive any additional funds and do not expect to receive any additional funds upon the exercise of the Series B Warrants
(the “Zero Exercise Price”).

Fundamental Transactions

In the event we consummate a merger or consolidation with or into another
person or other reorganization event in which our Common Stock is converted or exchanged for securities, cash or other property, or we
sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of our