Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 213

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 213
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 Plan, contingent of the consummation of the Business Combination.

In connection with the approval
of the Business Combination, holders of 671,285 shares of Class A Common Stock, exercised redemption rights. As a result, following satisfaction
of such redemptions, we had 5,563,297 shares of Class A Common Stock outstanding, of which (i) 82,047 were shares of Class A Common Stock
issued to the public in our Initial Public Offering, which shares of Class A Common Stock were entitled to receive a pro rata portion
of the remaining funds in our Trust Account in connection with its initial business combination, a liquidation or certain other events,
(ii) 4,596,250 were shares of Class A Common Stock issued upon the conversion of an equal number of shares of our Class B Shares acquired
by Sponsor prior to our Initial Public Offering, which shares of Class A Common Stock did not have redemption rights, and (iii) 885,000
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 Initial Public Offering, 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 $7,456,463.30 to holders of redeemed Class A Common Stock (an aggregate of
$11.11 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 875,000 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 1,000,000
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 1,200,000 shares of Class A Common Stock subject to the other earn-out
conditions set forth in the Business Combination Agreement.

On February 14, 2024, the
Business Combination between Legacy CERo and PBAX was consummated pursuant to the Business Combination Agreement.

At the effective time of
the Business Combination, (i) each outstanding share of Legacy CERo common stock,