Company: CERO
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001213900-25-004742
Chunk: 105

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 105
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, in some cases, limitations on volume and manner of sale applicable to affiliates under Rule 144. Furthermore, shares of our Common Stock reserved for future issuance under our incentive plan may become available for sale in future. The market price of shares of our Common Stock could drop significantly if the holders of the shares of Common Stock described above sell them or are perceived by the market as intending to sell them. These factors could also make it more difficult for us to raise additional funds through future offerings of shares of our Common Stock or other securities. Certain existing securityholders purchased our securities at a price below the current trading price of such securities, and may experience a positive rate of return based on the current trading price. Future investors in us may not experience a similar rate of return. Certain of our securityholders acquired our securities at prices below the current trading prices of our Common Stock and Public Warrants and may experience a positive rate of return ranging from $0.00 to $7.80 based on the current trading prices. In particular, the effective purchase prices at which certain Legacy CERo Stockholders and the Sponsor acquired their shares of our Common Stock are generally substantially less than the Initial Public Offering price of $1,000.00 per share, after giving effect to the Exchange Ratio (as defined in the Business Combination Agreement). Consequently, these securityholders may have an incentive to sell their shares of our Common Stock even if the trading price is below the price paid by investors in the Initial Public Offering, which could cause the market price of our Common Stock to decline. Such stockholders may realize a positive rate of return on the sale of their shares of Common Stock. On January 17, 2025, the closing prices of our Common Stock and our Public Warrants as reported on the Nasdaq were $2.34 per share and $0.0153 per Public Warrant, respectively. Holders of our Warrants will be less likely to exercise their Warrants if the exercise prices of their Warrants exceed the market price of our Common Stock. There is no guarantee that our Warrants will continue to be in the money prior to their expiration, and as such, the Warrants may expire worthless. As such, any cash proceeds that we may receive in relation to the exercise of the Warrants overlying shares of Common Stock being offered for sale in this prospectus will be dependent on the trading price of our Common Stock. There is no assurance that the holders of the Warrants will elect to exercise any or all of such Warrants. As