Company: CERO
Filing Date: 2025-11-17
Form Type: PRE 14A
Source: 0001213900-25-111175
Chunk: 19

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-17
Form: PRE 14A
Chunk 19
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 unrelated to the number of shares outstanding. If the Reverse Stock Split is effected and the market price of our Common Stock declines, the percentage decline as an absolute number and as a percentage of the overall market capitalization of the Company may be greater than would occur in the absence of the Reverse Stock Split. In evaluating the Reverse Stock Split, in addition to the considerations described above, the Board also took into account various negative factors associated with reverse stock splits generally. These factors include: the negative perception of reverse stock splits held by some investors, analysts, and other stock market participants; the fact that the stock price of some companies that have effected reverse stock splits has subsequently declined in share price and corresponding market capitalization; the adverse effect on liquidity that might be caused by a reduced number of shares outstanding; and the costs associated with implementing a reverse stock split. We also believe that the low market price of our Common Stock impairs its acceptability to important segments of the institutional investor community and the investing public. Many investors look upon low -pricedstock as speculative in nature and, as a matter of policy, avoid investment in such stocks. Moreover, the low market price of our Common Stock may have reduced the effective marketability of our shares because of the reluctance of many brokerage firms to recommend low -pricedstock to their clients. Further, a variety of brokerage house policies and practices tend to discourage individual brokers within those firms from dealing in low -pricedstocks. Some of those policies and practices pertain to the payment of brokers’ commissions and to time -consumingprocedures that function to make the handling of low -pricedstocks unattractive to brokers from an economic standpoint. In addition, the structure of trading commissions also tends to have an adverse impact upon holders of low -pricedstock because the brokerage commission on a sale of low -pricedstock generally represents a higher percentage of the sales price than the commission on a relatively higher -pricedissue. In order to provide flexibility, the Board is seeking stockholder approval for a range of reverse split ratios of not less than one -for-40and not more than one -for-150. The need for the range is due to the volatility of our stock price, which ranged from a high of $5.85 per share to a low of $0.089 per share between February 14, 2024 (the date of the Business Combination) and November14, 2025 (the Record Date). 9 We believe that enabling the Board of Directors to set the