Company: CERO
Filing Date: 2025-04-25
Form Type: PRE 14A
Source: 0001213900-25-035562
Chunk: 35

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-25
Form: PRE 14A
Chunk 35
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 stockholder approval prior to the issuance of Common Stock in connection with certain non -publicofferings involving the sale, issuance or potential issuance by a listed company of equity compensation. For this purpose, “equity compensation” includes Common Stock (and/or securities convertible into or exercisable for Common Stock) issued to our officers, directors, employees or consultants at a discount to the market value of the Common Stock, and “market value” is the closing bid price immediately preceding the time that the listed company enters into a binding agreement with such officer, director, employee or consultant to issue the equity compensation. Nasdaq Listing Rule 5635(d) requires the Company to obtain stockholder approval prior to certain issuances with respect to Common Stock or securities convertible into Common Stock other than in a public offering if the price is below the “Minimum Price” (as determined in accordance with Nasdaq rules) in an amount greater than or equal to 20% of the number of shares of Common Stock outstanding prior to such issuance, regardless of whether such shares are issued to one person or group or are more widely distributed. As the February 2025 Registered Direct Offering was only sold to a small number of investors, it is not considered a public offering under Nasdaq rules, even though the issuance of the shares of Common Stock, February 2025 Common Warrants and Pre -FundedWarrants was registered under the Securities Act. Although the shares of Common Stock and/or Pre -FundedWarrants (as defined below) and the accompanying February 2025 Common Warrants issued in the offering were sold at a price equal to the Minimum Price, the February 2025 Common Warrants are deemed to have an exercise price less than the Minimum Price as of the date of the February 2025 Securities Purchase Agreement (as defined below) because Nasdaq rules attribute a value of $0.125 per share of Common Stock issuable upon exercise of the February 2025 Common Warrants that must be added to the Minimum Price for the shares of Common Stock issued in the offering in order to determine the Minimum Price applicable to the exercise of such February 2025 Common Warrants. The issuance of Common Stock upon the exercise of the February 2025 Common Warrants at such exercise price would result in the investors in the February 2025 Registered Direct Offering (the “February 2025 Investors”) acquiring more than 20% of the amount of Common Stock issued and outstanding prior to the February 2025 Registered Direct Offering at a price below the Minimum Price