Company: CERO
Filing Date: 2025-05-02
Form Type: PRER14A
Source: 0001213900-25-039149
Chunk: 40

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-02
Form: PRER14A
Chunk 40
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 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, or approximately 93.9% of the outstanding shares of Common Stock. Although the COD does not contain the adjustments to the Alternate Conversion procedures contained in the terms of the Company’s outstanding Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock applicable when the Alternate Conversion Price is less than the Floor Price, the Floor Price does not apply to adjustments in connection with the issuance of securities at prices below the then -currentconversion price. As a result, following such issuances, the conversion price may be adjusted to a price below the Floor Price, resulting in the issuance of more than 80,128,205shares of Common Stock. In addition, under the terms of the Series D Preferred Stock, an April 2025 Investor may not convert the Series D Preferred Stock to the extent (but only to the extent) such April 2025 Investor or any of its affiliates would beneficially own a number of shares of Common Stock which would exceed 4.99%, or, at the election of the April 2025 Investor, a number of shares of Common Stock which would exceed 9.99%. April 2025 Private Placement In April 2025, the Company consummated the April 2025 Private Placement of 6,250shares of Series D Preferred Stock pursuant to the April 2025 Securities Purchase Agreement, dated April 21, 2025 (the “April 2025 Securities Purchase Agreement”), for aggregate proceeds of approximately $5 million, paid in cash or through the transfer of certain Transfer Shares (as defined in the April 2025 Securities Purchase Agreement) in lieu of cash, and agreed to issue up to 3,750 additional shares of Series D Preferred Stock for cash proceeds of up to $3million at one or more additional closings. Each additional closing of the April 2025 Private Placement is at the option of the April 2025 Investors upon notice to the Company and subject to satisfaction of customary closing conditions. Description of Securities See “ Description of Capital Stock” for a description of the Series D Preferred Stock. Impact on Stockholders of Approval or Disapproval of this Proposal If this proposal is approved, existing stockholders will suffer dil