Company: CERO
Filing Date: 2025-05-07
Form Type: DEF 14A
Source: 0001213900-25-040263
Chunk: 40

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-07
Form: DEF 14A
Chunk 40
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 approval. In the case of an adjustment to the conversion price upon the occurrence of the Adjustment Dates, such conversion price shall be reset to the most recent closing bid price prior to such Adjustment Date, if such closing bid price is lower than the then -currentconversion price, but, in any event, to a conversion price no lower than $0.156 (the “Floor Price”). The Alternate Conversion procedures apply at any time following a Triggering Event (as defined in the COD) until 10 trading days after such Triggering Event has been cured and permit the conversion of the Series D Preferred Stock at the “Alternate Conversion Price”. “Triggering Events” include the breach of covenants set forth in the COD, including, but not limited to, with respect to the Company’s obligation to file and maintain the effectiveness of a resale registration statement for the underlying shares of Common Stock, maintain the listing of the 19 Common Stock on a nationally recognized securities exchange or deliver shares of Common Stock upon conversion of the Series D Preferred Stock within the required time period, as well as certain court judgments or defaults under outstanding indebtedness or events of bankruptcy or insolvency. The “Alternate Conversion Price” is the lower of the then -currentconversion price and the lowest volume -weightedaverage price of the Common Stock during the five consecutive trading day period prior to the conversion date, but, in any event, no lower than the Floor Price. The Alternate Conversion procedures also result in the application of a 25% Required Premium (as defined in the COD) added to the value of the Series D Preferred Stock converted. As a result, following a decline in the trading price of the Common Stock as of an Adjustment Date or when the Alternate Conversion procedures are in effect, the Series D Preferred Stock may be convertible at a conversion price as low as the Floor Price. If all of the 10,000shares of Series D Preferred Stock, including the 6,250shares of Series D Preferred Stock and the 3,750shares of Series D Preferred Stock that may be issued in additional closings, were converted at the Floor Price following an Adjustment Date resulting in the reset of the conversion price to the Floor Price, the April 2025 Investors would own 64,102,564shares of Common Stock, or approximately 92.5% of the outstanding shares of Common Stock. If such shares were converted at the Floor Price, with the application of the Required Premium, the April 2025 Investors would own 80,128,205shares of Common Stock