Company: PTPI
Filing Date: 2025-03-18
Form Type: DEF 14A
Source: 0001104659-25-025104
Chunk: 40

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-03-18
Form: DEF 14A
Chunk 40
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 2023 pursuant to the Securities
Purchase Agreement (the “Series A Purchase Agreement”), dated as of July 13, 2023, by and among the Company and the
investors signatory thereto (the “Investors”) contain provisions that require the reduction of the conversion price and
exercise price of the Series A Preferred Stock and the Warrants, respectively, as then in effect, on the sixteenth (16th)
trading day immediately following a reverse stock split if the “Event Market Price” is less than the conversion price or
exercise price then in effect. The term “Event Market Price” is used in the Certificate of Designations and the Warrant
to refer to, with respect to a reverse stock split, the quotient determined by dividing (x) the sum of the VWAP (as defined in
the Certificate of Designations and the Warrant, respectively) of the Common Stock for each of the five (5) lowest trading days
during the twenty (20) consecutive trading day period ending and including the trading day immediately preceding the sixteenth
(16th) trading day after such reverse stock split, divided by (y) five (5). The number of shares of Common Stock issuable upon
exercise of the Warrants will be increased in proportion to any such reduction, such that the aggregate exercise price of the
Warrants will remain the same following the reduction.

Potential Consequences if the Reverse Stock Split Proposal is Not Approved

If the Reverse Stock Split Proposal is not approved by our stockholders,
our Board will not have the authority to effect the Reverse Stock Split Charter Amendment to, among other things, facilitate the continued
listing of our Common Stock on Nasdaq by increasing the per share trading price of our Common Stock to help ensure a share price high
enough to satisfy the Nasdaq Minimum Bid Price Rule. Any inability of our Board to effect the Reverse Stock Split could expose us to delisting
from Nasdaq.

Determination of the Reverse Stock Split Ratio

The Board believes that stockholder approval of a range of potential
Reverse Stock Split ratios is in the best interests of our Company and stockholders because it is not possible to predict market conditions
at the time the Reverse Stock Split would be implemented. We believe that a range of Reverse Stock Split ratios provides us with the most
flexibility to achieve the desired results of the Reverse Stock Split. The Reverse Stock Split ratio to be selected by our Board will
be not more than 1-for-500.

The selection of