Company: CMCT
Filing Date: 2025-02-24
Form Type: PRE 14A
Source: 0001104659-25-016503
Chunk: 14

Company: Creative Media & Community Trust Corp
Filing Date: 2025-02-24
Form: PRE 14A
Chunk 14
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 is consummated and the trading price of our Common Stock declines, the percentage decline as an absolute number and as a percentage of our overall market capitalization may be greater than would occur in the absence of the Reverse Stock Split.

The implementation of the Reverse Stock Split may decrease the liquidity of our Common Stock.

The liquidity of our Common Stock may be harmed by the implementation of the Reverse Stock Split, given the reduced number of shares of Common Stock that would be outstanding after the Reverse Stock Split, particularly if the share price does not increase as a result thereof. In addition, investors might consider the increased proportion of unissued authorized capital stock to issued shares of capital stock resulting from the Reverse Stock Split to have an anti-takeover effect under certain circumstances, because the proportion allows for dilutive issuances which could prevent certain stockholders from changing the composition of the Board or render tender offers for a combination with another entity more difficult to successfully complete. The Board does not intend for the Reverse Stock Split to have any anti-takeover effects.

#### Principal Effects of the Reverse Stock Split
Common Stock and Preferred Stock .

If the Reverse Stock Split is approved by our stockholders at the Special Meeting, the Company plans to issue a press release announcing the Effective Date of the Reverse Stock Split and will file Articles of Amendment with the Maryland SDAT substantially in the form of the Proposed Amendment attached hereto as Appendix A to effect the Reverse Stock Split. Except for adjustments that may result from the treatment of fractional shares as described below, each issued share of Common Stock immediately prior to the Effective Date will automatically be changed, as of the Effective Date, into a fraction of a share based on the 1:25 ratio. In addition, proportional adjustments will be made to the maximum number of shares issuable under, and other terms of, our Company’s equity incentive plan.

Except for adjustments that may result from the treatment of fractional shares of Common Stock, as described below, because the Reverse Stock Split would apply to all issued shares of Common Stock, the implementation of the Reverse Stock Split would not alter the relative rights and preferences of our existing stockholders nor affect any stockholder’s proportionate equity interest in the Company. For example, a holder of approximately two percent (2%) of the voting power of the outstanding Common Stock immediately prior to the effectiveness of the Reverse Stock Split will generally continue to hold approximately two percent (2%) of the voting power of the outstanding Common Stock immediately thereafter. Moreover, the number of stockholders of record of our Common Stock will not be affected