Company: PTPI
Filing Date: 2025-03-18
Form Type: DEF 14A
Source: 0001104659-25-025104
Chunk: 38

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-03-18
Form: DEF 14A
Chunk 38
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may otherwise have policies that discourage or prohibit them from following or recommending companies with low stock prices. Additionally,
because brokers’ commissions on transactions in low-priced stocks generally represent a higher percentage of the stock price than
commissions on higher-priced stocks, the current average price per share of our Common Stock can result in individual stockholders paying
transaction costs representing a higher percentage of their total share value than would be the case if the share price were substantially
higher.

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The Board intends to effect
the Reverse Stock Split only if it believes that a decrease in the number of shares outstanding is in the best interests of the Company
and our stockholders and is likely to improve the trading price of our Common Stock and improve the likelihood that we will be allowed
to maintain our listing on Nasdaq. Accordingly, our Board approved the Reverse Stock Split as being in the best interests of the Company.

Risks Associated with the Reverse Stock Split

The Reverse Stock Split May Not Increase the Price of our Common Stock Over the Long-Term.

As noted above, the principal
purpose of the Reverse Stock Split is to increase the trading price of our Common Stock to comply with the Nasdaq Minimum Bid Price Rule. However, the effect of the Reverse Stock Split on the market price of our Common Stock cannot be predicted with
any certainty, and we cannot assure you that the Reverse Stock Split will accomplish this objective for any meaningful period of time,
or at all. While we expect that the reduction in the number of outstanding shares of Common Stock will proportionally increase the market
price of our Common Stock, we cannot assure you that the Reverse Stock Split will increase the market price of our Common Stock by a multiple
of the Reverse Stock Split ratio, or result in any permanent or sustained increase in the market price of our Common Stock. The market
price of our Common Stock may be affected by other factors which may be unrelated to the number of shares outstanding, including the Company’s
business and financial performance, general market conditions, and prospects for future success.

The Reverse Stock Split May Decrease the Liquidity of our Common Stock.

The Board believes that the
Reverse Stock Split may result in an increase in the market price of our Common Stock, which could lead to increased interest in our Common
Stock and possibly promote greater liquidity for our stockholders. However, the Reverse Stock Split will also reduce the total number
of outstanding shares of Common Stock, which may lead to reduced trading and a smaller number of market makers for our Common