Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 140

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 140
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 the shares of Common Stock issued to such Legacy CERo stockholders and Convertible Bridge Note investors will be retired and
the restrictions on the Sponsor’s Common Stock will be removed.

Of the 2,000,000 shares
of Common Stock held by Sponsor, 250,000 shares were transferred to a key investor, 875,000 shares were distributed to select Legacy
CERo stockholders and Convertible Bridge Note investors as earnout shares, and 875,000 shares being retained by the Sponsor.

CERo also issued 1,768,550
new shares of Common Stock in connection with the Business Combination, consisting of (i) 1,649,500 shares issued to select vendors in
lieu of cash payment for services provided related to the Business Combination and (ii) 119,050 shares issued to Keystone as consideration
for its entry into the Keystone Equity Financing.

Additionally, in February
2024, CERo consummated a private placement of 10,039 shares of Series A Preferred Stock, warrants to purchase 612,746 shares of Series
A Warrants and warrants to purchase 2,500 shares of Preferred Warrants, pursuant to the Amended and Restated Securities Purchase Agreement,
dated February 14, 2024, by and among PBAX, Legacy CERo and certain accredited investors (the “Initial Investors”) for aggregate
cash proceeds to CERo of approximately $8.0 million, plus additional cash proceeds of $2.0 million on the mandatory exercise of the Preferred
Warrants on the registration of the underlying common shares. A portion of such Series A Preferred Stock was issued as consideration
for the cancellation of outstanding indebtedness or securities of PBAX or Legacy CERo, including a promissory note of PBAX and the Convertible
Bridge Notes.

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In addition, CERo entered
into a side letter with Keystone, pursuant to which CERo agreed to make a payment of $1.0 million to Keystone, which amount reflects
an original issue discount to Keystone, and to reimburse $150,000 of legal expenses incurred thereby. In addition, the Sponsor agreed
to transfer an aggregate of 250,000 shares of Class A Common Stock to another investor as consideration for their participation in the
PIPE Financing.

On February 14, 2024, as
a condition to the closing of the PIPE Financing, CERo entered into the Old Keystone Purchase Agreement with