Company: CMCT
Filing Date: 2025-06-13
Form Type: PRE 14A
Source: 0000908311-25-000044
Chunk: 51

Company: Creative Media & Community Trust Corp
Filing Date: 2025-06-13
Form: PRE 14A
Chunk 51
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 the 1:10 Reverse Stock Split is approved by our stockholders and the Company, in its sole discretion, determines to effect the 1:10 Reverse Stock Split, we will issue a press release announcing the 1:10 Effective Date (as defined below) of the 1:10 Reverse Stock Split and will file the Articles of Amendment, substantially in the form attached hereto as Appendix C (the “Proposed 1:10 Amendment”), to effect the 1:10 Reverse Stock Split. The 1:10 Reverse Stock Split will become effective upon the effective time stated in the Articles of Amendment (the “1:10 Effective Date”), after the Articles of Amendment are accepted for record by the Maryland SDAT. The 1:10 Effective Date shall be no later than August 1, 2026.

If each of Proposal No. 4, Proposal No. 5, and Proposal No. 6 are approved at the Annual Meeting, the Company may elect, in its sole discretion, to implement only one of the approved proposals at any time prior to August 1, 2026, or to implement none of the proposals. Providing the Company with discretion to select the exchange ratio at which to effect a reverse stock split—based on one of the three ratios contemplated by the proposed amendments—rather than requiring approval of a single fixed ratio, affords the Company flexibility to respond to prevailing market conditions, achieve its objectives with the reverse stock split, and act in the best interests of the Company. If certain but not all of Proposal No. 4, Proposal No. 5, or Proposal No. 6 were to be approved at the Annual Meeting, the Company may elect, in its sole discretion, to implement only one of the approved proposals at any time prior to August 1, 2026, or take no action with respect to such approved proposals.

#### Reasons for the 1:10 Reverse Stock Split
As previously reported, the Company has previously failed to comply with the Nasdaq Minimum Bid Price Rule. As previously reported, after falling out of Compliance with the Nasdaq Minimum Bid Price Rule, the Company had previously been eligible for and received a 180-day period to regain compliance with the Nasdaq Minimum Bid Price Rule (“Nasdaq Compliance Grace Period”). The Company is no longer eligible for the Nasdaq Compliance Grace Period. As such, if the Company fails to maintain compliance with the Nasdaq Minimum Bid Price Rule at any time, then it could be immediately delisted from Nasdaq