Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 395

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 395
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 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.

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 earnout targets and 200,000 of which are subject to vesting upon a change of control, respectively. |

| 4. | Certain holders of the                                                                                                      
 Company’s common stock received a pro rata portion of 875,000 Earnout Shares, which became fully vested upon the closing of 
 the Business Combination.                                                                                                   |

| 5. | Certain holders of the                                                                                                        
 Company’s common stock