Company: PTPI
Filing Date: 2025-03-14
Form Type: PRER14A
Source: 0001104659-25-024012
Chunk: 71

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-03-14
Form: PRER14A
Chunk 71
---
ations, the Series A Purchase Agreement and Warrants (the “Required Reserve Amount”), until such time as the
Company obtains approval from its stockholders of an amendment to the Company’s Charter to increase the number of authorized shares
of capital stock of the Company (the “Share Increase Stockholder Approval”). Additionally, on February 17, 2025, the
Company entered into Option Waivers with certain of the Company’s directors and officers, pursuant to which, such directors and
officers each agreed to waive the right to exercise stock options held by them until such time as the Share Increase Stockholder Approval
is obtained (collectively, the “Option Waivers”).

We currently do not have
a sufficient number of authorized shares of Common Stock to meet the Required Reserve Amounts. Accordingly, we must hold a special meeting
of stockholders to increase the number of authorized shares of Common Stock in order to meet the Required Reserve Amounts. The Share
Increase Amendment is intended to fulfill this obligation. In addition, if we are unable to make dividend or amortization payments on
the Series A Preferred Stock in shares of our Common Stock because we do not have sufficient number of authorized shares of Common
Stock, we will have to satisfy such payment obligations by means of cash redemption payments to the holders of Series A Preferred
Stock.

Further, the Board believes that unless we obtain Share Increases Stockholder
Approval to amend the Charter to increase the number of authorized shares of Common Stock, we will be severely limited by the inability
to issue additional shares pursuant to awards under our equity incentive plan or in connection with future capital raising transactions
or strategic transactions. This may cause a delay in our future capital raising or other strategic transactions and may have a material
adverse effect on our business and financial condition.

As of the Record Date, 29,929,668 shares of Common
Stock were outstanding, with 159,272,297 shares of authorized Common Stock that are unissued and reserved for future issuance. Thus, as
of the Record Date, we had 60,798,035 shares of authorized Common Stock remaining that were unissued and unreserved for issuance.

<div align='center'>43</div>

Consequences of Not Approving this Proposal

If this proposal is not approved
by our stockholders, we may not have enough shares to make payments due to the holders of the Series A Preferred Stock or upon exercise
of the Warrants in the form of the applicable shares of Common Stock issuable upon conversion of the