Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 340

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 340
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 shares of Predecessor common stock and 29,770,105 shares of Predecessor
convertible preferred stock. All classes of the Predecessor’s stock had a par value of $0.0001. On February 14, 2024, on the close
of the Merger, the Predecessor’s outstanding convertible preferred stock converted to Common Stock at a conversion ratio of 0.0806
and 0.1757 shares of Common Stock for each share of Predecessor Series Seed Convertible Preferred Stock and Predecessor Series A
Convertible Preferred Stock, respectively. This resulted in the issuance of 4,155 and 40,000 shares of Common Stock for the Predecessor’s
Series Seed Preferred Stock and Predecessor Series A Preferred Stock, respectively.

Predecessor’s Series Seed and Series A
Preferred Stock had cash redemption features outside of its control, and therefore were classified in a mezzanine section presented on
the balance sheets between liabilities and stockholders’ deficit.

Purchase of Common Stock by Keystone Capital Partners under the Equity Line of Credit (“ELOC”)

On February 14, 2024, in conjunction with, and
as a condition to the closing of the Series A PIPE Financing, the Company entered into a common stock purchase agreement (the “Keystone
Purchase Agreement”) with Keystone Capital Partners, L.P. (“Keystone”), pursuant to which we may sell and issue, and
Keystone is obligated to purchase, up to 250,000 shares subject to the Company obtaining all necessary stockholder approvals to issue
the shares to Keystone. The price of the shares purchased by Keystone under the ELOC is 90% of various volume-weighted average price
(“VWAP”) and closing price-based formulae, and requires a waiver, should the selling price be below $100.00 per share. As
consideration for Keystone’s commitment to purchase shares of Common Stock pursuant to the Keystone Purchase Agreement, we issued
an aggregate of 18,643 shares of Common Stock to Keystone.

In the three and nine months ended September
30, 2024, the Company sold 129,979 shares and 206,079 shares for gross proceeds of approximately $1.7 and $4.3 million, respectively,
under the Keystone ELOC. The Company sought and received a waiver to sell the shares below $100.00 per share. The Company also issued
16,139 and 18,643 shares of common stock to