Company: PIII
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001140361-25-016302
Chunk: 28

Company: P3 Health Partners Inc.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 28
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, the Company is subject to the Nasdaq Listing Rules. Nasdaq Listing Rule 5635(d) requires stockholder approval prior to the issuance of securities in connection with a transaction, other than a public offering, involving the sale, issuance or potential issuance by the company of common stock (or securities convertible into or exercisable for common stock), which alone or together with sales by officers, directors or substantial stockholders of the company, equals 20% or more of the common stock or 20% or more of the voting power outstanding before the issuance, in each case, at a price that is less than the “Minimum Price.” The Minimum Price is the lower of (1) the Nasdaq official closing price (as reflected on Nasdaq.com) immediately preceding the signing of the binding agreement or (2) the average Nasdaq official closing price of the common stock (as reflected on Nasdaq.com) for the five trading days immediately preceding the signing of the binding agreement. We are asking stockholders to approve the issuance of up to 1,428,129 shares of Class A common stock issuable upon the exercise of the outstanding VBC 4 Warrants in order to comply with Nasdaq Listing Rule 5635(d). 16

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Adverse Effects of Approval of this Proposal The approval of this proposal will result in holders of VBC 4 Warrants being able to exercise such warrants, although such holders will have no obligation to do so. The full exercise of the VBC 4 Warrants would result in the issuance of 1,428,129 additional shares of our Class A common stock, which would dilute the ownership interest of our existing stockholders. The exercise of VBC 4 Warrants and/or the sale of Class A common stock received upon such exercise in the open market could materially and adversely affect the market price of our Class A common stock. Factors Considered by the Board in its Recommendation After careful consideration at the time of the 2025 Financing, our Board determined that the 2025 Financing, including the sale of the VBC 4 Warrants, was in the best interests of the Company in light of our cash position and liquidity needs at the time. In reaching its determination, our Board consulted with members of our senior management and our legal and strategic advisors, among others, and considered a number of factors. The entry into the Promissory Note and the issuance of the VBC 4 Warrants was approved by a committee of independent, disinterested directors of