Company: CERO
Filing Date: 2025-05-02
Form Type: PRER14A
Source: 0001213900-25-039149
Chunk: 38

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-02
Form: PRER14A
Chunk 38
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 Stock outstanding prior to such issuance, regardless of whether such shares are issued to one person or group or are more widely distributed. The Series D Preferred Stock currently has a conversion price greater than or equal to the Minimum Price as of the date of the April 2025 Securities Purchase Agreement (as defined below). However, the Certificate of Designation of the Series D Preferred Stock (the “COD”) contains adjustment provisions that provide for the reduction of the conversion price thereof upon certain issuances of securities by the Company at an offering price below such conversion price on the 30 thand 60 thday (such dates, the “Adjustment Dates”) following the later of (x) the stockholder approval sought by this proposal and (y) the earlier of (i) the availability of Rule 144 under the Securities Act for the resale of the shares issuable upon conversion thereof or (ii) the effectiveness of a registration statement for resale of such shares under the Securities Act. The issuance of Common Stock upon the conversion of the Series D Preferred Stock at such a reduced conversion or exercise price may result in certain investors in the April 2025 Private Placement (the “April 2025 Investors”) acquiring more than 20% of the amount of Common Stock issued and outstanding prior to the April 2025 Private Placement at a price below the Minimum Price. Accordingly, the Company needs stockholder approval of the issuance of shares of Common Stock upon any such reset of the conversion of the Series D Preferred Stock. On the Record Date, assuming the issuance of all shares of Common Stock upon conversion of all of the shares of the Series D Preferred Stock (including the 6,250shares of Series D Preferred Stock issued and outstanding and the 3,750shares of Series D Preferred Stock that may be issued in additional closings), the April 2025 Investors would own approximately 12,820,513 million shares of Common Stock, assuming conversion at the initial conversion price of $0.78 per share. Such shares would constitute approximately 71.3% of the then -outstandingCommon Stock after the issuance of such shares. Potential Adjustments Because the conversion price of the Series D Preferred Stock may be adjusted, the number of shares that will actually be issued may be more or less than such number of shares. Such adjustments include (i) adjustments to the conversion price upon the occurrence of an Adjustment Date, (ii) the application of the Alternate Conversion procedures set forth in Section 4(e) of the COD, including the application of the “Alternate Conversion