Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 138

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 138
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 Combination Agreement was amended on February 5, 2024
and again on February 13, 2024. The Business Combination closed on February 14, 2024, at which time the following occurred:

| 1. | Each                                                                                                           
 outstanding share of Legacy CERo’s convertible preferred stock (the “CERo preferred stock”) was converted into 
 the number of shares of PBAX’s Class A common stock, par value $0.0001 per share (the “Class A Common Stock”), 
 calculated by dividing the liquidation preference by $10.00.                                                   |

| 2. | Each outstanding                                                                                                                       
 share of Legacy CERo’s common stock (the “CERo common stock”) was converted into the number of shares of Class                         
 A Common Stock calculated by multiplying each share by the exchange ratio (the “Exchange Ratio”). The Exchange Ratio                   
 of 0.064452 was calculated by first subtracting the aggregate liquidation preference of outstanding preferred shares from $50 million, 
 then dividing the result by the number of shares of CERo common stock outstanding and dividing by $10.00 per share.                    |

| 3. | Each holder                                                                                                                        
 of Legacy CERo common stock received a pro rata portion of up to 1.2 million earnout shares of Class A Common Stock, 1,000,000 of  
 which are subject to vesting upon the achievement of certain stock price-based earnout targets and 200,000 of which are subject to 
 vesting upon a change of control, respectively.                                                                                    |

| 4. | Certain                                                                                                                               
 holders of Legacy CERo common stock received a pro rata portion of 875,000 earnout shares of Class A Common Stock, which became fully 
 vested upon the closing of the Business Combination.                                                                                  |

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| 5. | Certain                                                                                                                     
 holders of the Legacy CERo’s common stock received a pro rata portion of up to 1.0 million earnout shares of Class A Common 
 Stock, which are subject to vesting upon the Company’s filing an investigational new drug application with the FDA.         |

| 6. | Each outstanding                                                                                                                      
 Legacy CERo option was converted into an option to purchase a number of shares of Class A Common Stock, equal to the shares of Legacy 
 CERo common stock underlying the option multiplied by the Exchange Ratio, at an exercise price per share