Company: CERO
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001213900-25-004742
Chunk: 358

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 358
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OTECH ACQUISITION CORP. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023

Business Combination

On February 5, 2024, the
parties entered into Amendment No. 1 to the Business Combination Agreement to, among other things, (i) remove the minimum cash condition,
(ii) modify the stock-price based milestones such that (a) the trading price condition for the First Level Earnout Target shall be reset
from $ to % of the reset Conversion Price of the Series A Preferred Stock and (b) the trading price condition for the Second Level
Earnout Target shall be reset from $ to % of the reset Conversion Price of the Series A Preferred Stock, and (iii) increase the
aggregate number of shares of Class A common stock issuable to the stockholders of CERo in connection with the Business Combination from
shares to shares. Such number of shares is in addition to up to shares issuable upon satisfaction of certain
earn-out conditions and shares issuable upon exercise of rollover options or warrants.

On February 8, 2024, the
Company held a special meeting of stockholders (the “Fourth Special Meeting”). At the Fourth Special Meeting, the Company’s
stockholders adopted and approved (i) the Business Combination Agreement, pursuant to which Merger Sub merged with and into CERo, with
CERo surviving as a wholly-owned subsidiary of the Company and approved the Business Combination and the other transactions and ancillary
documents contemplated by and required for the Business Combination; (ii) on a non-binding advisory basis, certain changes to the Charter,
including the name change to CERo Therapeutics Holdings, Inc., share authorizations, and others; (iii) the issuance of Class A common
stock to CERo stockholders pursuant to the Business Combination Agreement; (iv) the election of five directors; and (v) the 2024 Equity
Incentive Plan and the 2024 Employee Stock Purchase Plan, contingent of the consummation of the Business Combination.

In connection with the approval
of the Business Combination, holders of shares of Class A common stock, exercised redemption rights. As a result, following satisfaction
of such redemptions, we had shares of Class A common stock outstanding, of which (i) were shares of Class A common stock
issued to the public in our IPO, which shares of Class A common stock were entitled to receive a pro rata portion of the remaining funds