Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 214

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 214
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 (the “Legacy CERo common stock”), was cancelled
and converted into the right to receive shares of Class A Common Stock; (ii) each outstanding option to purchase Legacy CERo common stock
was converted into an option to purchase shares of Class A Common Stock; (iii) each outstanding share of CERo preferred stock, was converted
into the right to receive shares of Class A Common Stock, and (iv) each outstanding warrant to purchase Legacy CERo warrants was converted
into a warrant to acquire shares of Class A Common Stock. In addition, each outstanding Legacy CERo convertible bridge note was exchanged
for shares of Series A Preferred Stock.

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In addition, the holders
of Legacy CERo common stock and Legacy CERo preferred stock have the contingent right to receive additional shares of Class A Common
Stock (the “Earnout Shares”). At the Closing we issued three pools of shares subject to forfeiture if the applicable conditions
to transferability thereof are not satisfied: (i) 1,200,000 shares of Class A Common Stock, which will be fully vested upon the achievement
of certain adjusted stock price-based earnout targets or upon a qualifying transaction (ii) 875,000 shares of Common Stock, pursuant
to a Letter Agreement, dated as of February 14, 2024 (the “Sponsor Share Forfeiture Agreement”) which were fully vested at
Closing of the Business Combination and which were issued as an offset to the Sponsor Share Forfeiture Agreement, and (iii) 1,000,000
shares of Common Stock, which will be fully vested upon to achievement of certain regulatory milestone-based earnout targets.

As consideration for the
Business Combination, we issued to Legacy CERo Stockholders an aggregate of 7,597,638 shares of Class A Common Stock, including 2,200,000
Earnout Shares and 382,651 shares issuable upon exercise of rollover options or warrants.

On February 14, 2024, we
sold 10,039 shares of Series A Preferred Stock, 612,746 Series A Warrants and 2,500 Preferred Warrants pursuant to the First Securities
Purchase Agreement for aggregate cash proceeds of approximately $8.0 million, plus additional cash proceeds of $2.0 million on the mandatory
exercise of the Preferred Warrants upon the registration of the underlying shares of Common Stock. A portion of the issued Series A Preferred
Stock were