Company: CERO
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001213900-25-010230
Chunk: 107

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 107
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arrants”);      
 and (ii) 558,617 shares of Common Stock issuable upon the conversion of shares of Series A Preferred Stock resulting from the exercise   
 of outstanding Series A Preferred Warrants.                                                                                              |

56 In addition to any resales pursuant to such registration statements, subject to applicable transfer restrictions and the conditions to the availability of Rule 144 for former shell companies under Rule 144(i), shares of Common Stock held by these stockholders will be eligible for resale, potentially subject to, in the case of stockholders who are our affiliates, volume, manner of sale, and other limitations under Rule 144 promulgated under the Securities Act. In addition, shares of our Common Stock issuable upon exercise or vesting of incentive awards under our incentive plans are, once issued, eligible for sale in the public market, subject to any lock-up agreements and, in some cases, limitations on volume and manner of sale applicable to affiliates under Rule 144. Furthermore, shares of our Common Stock reserved for future issuance under our incentive plan may become available for sale in future. The market price of shares of our Common Stock could drop significantly if the holders of the shares of Common Stock described above sell them or are perceived by the market as intending to sell them. These factors could also make it more difficult for us to raise additional funds through future offerings of shares of our Common Stock or other securities. Certain existing securityholders purchased our securities at a price below the current trading price of such securities, and may experience a positive rate of return based on the current trading price. Future investors in us may not experience a similar rate of return. Certain of our securityholders acquired our securities at prices below the current trading prices of our Common Stock and Public Warrants and may experience a positive rate of return based on the current trading prices. In particular, the effective purchase prices at which certain Legacy CERo Stockholders and the Sponsor acquired their shares of our Common Stock are generally substantially less than the Initial Public Offering price of $1,000.00 per share, after giving effect to the Exchange Ratio (as defined in the Business Combination Agreement). Consequently, these securityholders may have an incentive to sell their shares of our Common Stock even if the trading price is below the price paid by investors in the Initial Public Offering, which could cause the market price of our Common Stock to decline. Such stockholders may realize a positive rate of return on the sale of their shares of Common Stock. On February 3, 2025, the closing prices of our Common