Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 398

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 398
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 Stock for an aggregate purchase price of $1.5 million
in accordance with the Securities Purchase Agreement, and (ii) the Sponsor agreed to forfeit an aggregate of 250,000 shares of Class
A Common Stock held by the Sponsor for no additional consideration other than the commitments and undertakings of the Share Reallocation
Investor made to the Company, in each case, on or promptly following the consummation of the Business Combination at the Closing.

Fee Modification

Prior to the close of the Business Combination,
the Company entered into fee modification agreements with certain third-party vendors and service providers, pursuant to which such vendors
received an aggregate of 1,629,500 shares of Common Stock in lieu of certain payments due to such vendors. As a result, the cash expenses
payable at Closing were reduced by approximately $8.54 million.

In particular, the Company entered into a fee modification
agreement with CCM, pursuant to which CCM forfeited such fees and the Company issued an aggregate of 1,200,000 shares of Common Stock,
with 1,000,000 of such shares being subject to forfeiture unless New CERo conducts a capital-raising transaction within nine months of
the Closing, pursuant to which New CERo shall issue and sell securities in an aggregate amount of at least $25.0 million, Affiliates
of CCM have and manage investment vehicles with a passive investment in the Sponsor.

Equity Line of Credit – Keystone Capital Partners, LLC (“Keystone”)

On February 14, 2024, as a condition to the closing
of the PIPE Financing, New CERo entered into a common stock purchase agreement (the “Common Stock Purchase Agreement”) with
Keystone, pursuant to which New CERo may sell and issue, and Keystone is obligated to purchase, up to the lesser of (i) an aggregate
of up to 2,977,070 shares of newly issued shares of Common Stock and (ii) the Exchange Cap (as defined below).

<div align='center'>F-47

PHOENIX BIOTECH ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2023</div>

As consideration for Keystone’s commitment
to purchase shares of Common Stock pursuant to the Common Stock Purchase Agreement, at Closing, New CERo issued 119,050 shares of Common
Stock to Keystone. In addition, New CERo has agreed to issue