Company: CERO
Filing Date: 2025-04-25
Form Type: PRE 14A
Source: 0001213900-25-035562
Chunk: 21

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-25
Form: PRE 14A
Chunk 21
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 as there can be no assurance that the closing bid price will not be below $1.00 in the future, the Company’s Board believes that it is in the best interests of the Company and its stockholders to proactively seek and obtain stockholder approval of an authorization to consummate an additional Reverse Stock Split. Failure to approve the Reverse Stock Split may have serious, adverse effects on the Company and its stockholders. Our Common Stock could be delisted from Nasdaq because shares of our Common Stock may trade below the requisite $1.00 per share price needed to comply with the listing requirements of Nasdaq and maintain our listing. Our shares may then be quoted on the OTC Bulletin Board or other small trading markets, which are generally considered to have less volume and be less efficient markets. We believe an investor likely would find it less convenient to sell, or to obtain accurate quotations in seeking to buy, our Common Stock on an over -the-countermarket. Many investors likely would not buy or sell our Common Stock due to difficulty in accessing over -the-countermarkets, policies preventing them from trading in securities not listed on a national exchange, or other reasons. In that event, the Common Stock could trade thinly as a microcap or penny stock, adversely decrease to nominal levels of trading and may be avoided by retail and institutional investors, resulting in the impaired liquidity of our Common Stock. 8 As of the Record Date, our Common Stock closed at $0.7300 per share on Nasdaq. The Reverse Stock Split, if effected, should have the immediate effect of increasing the price of our Common Stock as reported on Nasdaq, therefore reducing the risk that our Common Stock could be delisted from Nasdaq. However, we cannot assure you that the price of our Common Stock will not decline after the Reverse Stock Split. Our Board strongly believes that the Reverse Stock Split is necessary to maintain our listing on Nasdaq. Accordingly, the Board recommended that our shareholders approve the Reverse Stock Split Proposal to effect the Reverse Stock Split and directed that this proposal be submitted to our shareholders for approval at the Annual Meeting, including for the reasons discussed below. Appeal to a Broader Range of Investors to Generate Greater Investor Interest in the Company An increase in our stock price may make our Common Stock more attractive to investors. Brokerage firms may be reluctant to recommend lower -pricedsecurities to their clients lower -pricedsecurities. Many institutional investors have policies prohibiting them from holding lower -pricedstocks in their portfolios, which reduces the number of potential purchasers of