Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 39

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 39
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5, 2025, the Company entered into a securities purchase agreement (the “SPA”) with the investors. The SPA contains
customary representations, warranties and agreements of the Company and each investor and customary indemnification rights and obligations
of the parties. In connection with this offering, the Company received net proceeds of approximately $4.2 million, which is net of offering
costs and fees of $839,004. During the three months ended March 31, 2025, 300,000 shares of common stock were purchased upon the closing
of the Offering and 1,824,280 shares were issued in connection with the exercise of pre-funded warrants, totaling 2,124,280 shares of
its common stock issued of the aggregate amount of 2,551,020 Common Stock shares sold. As of March 31, 2025, 426,740 pre-funded warrants
remain exercisable.

The Warrants have an exercise
price of $1.96 per share, are immediately exercisable upon stockholder approval and have a term of exercise equal to five years following
the initial exercise date. The exercise price and number of shares of Common Stock issuable upon exercise is subject to appropriate adjustment
in the event of stock dividends, stock splits, reorganizations or similar events affecting the Common Stock and the exercise price.

In connection with the Offering,
on February 5, 2025, the Company entered into a placement agency agreement (the “Placement Agency Agreement”) with Alliance
Global Partners (“A.G.P.”), as the exclusive placement agent in connection with the Offering (the “Placement Agent”).
Pursuant to a side letter between the Placement Agent and JonesTrading Institutional Services LLC (“Jones”), dated February
3, 2025, Jones agreed to be a financial advisor for the Offering. In connection with the services provided by Jones, the Placement Agent
and Jones agreed that the Placement Agent will receive an aggregate fee equal to 6% of the gross proceeds received in the Offering and
Jones will receive an aggregate fee equal to 3% of the gross proceeds received in the Offering. In addition, the Company agreed to reimburse
the Placement Agent for its legal fees and expenses and other out-of-pocket expenses in an amount up to $85,000, non-accountable expenses
of up to $25,000 and has agreed to reimburse Jones for all reasonable and documented out-of-pocket fees and expenses, including but not
limited to travel and other out-of-pocket expenses in an amount