Company: SPRB
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0000950170-25-059288
Chunk: 39

Company: SPRUCE BIOSCIENCES, INC.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 39
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 authorized shares of our common stock was 200,000,000 shares, which will not be affected by the Reverse Stock Split.

Criteria to be Used for Determining Whether to Implement Reverse Stock Split

In determining whether to implement the Reverse Stock Split and selecting the exchange ratio, the Board will consider various factors such as:

the total number of shares of common stock outstanding;

the requirements to regain Nasdaq listing of our common stock;

the historical trading price and trading volume of our common stock;

the then prevailing trading price and trading volume for our common stock;

the anticipated impact of the Reverse Stock Split on the trading price of and market for our common stock;

potential financing opportunities;

prevailing general market and economic conditions; and

whether and when our Board desires to have the additional authorized but unissued shares of common stock that will effectively result from the implementation of a Reverse Stock Split when available to provide the flexibility to use our common stock for business and/or financial purposes.

The Board will have sole discretion as to any implementation of, and the exact timing and actual ratio of, the Reverse Stock Split within the range of ratios specified in this proposal. The Board may also determine that the Reverse Stock Split is no longer in the best interests of our Company and our stockholders and decide to abandon the Reverse Stock Split at any time before, during or after the Special Meeting and prior to its effectiveness, without further action by the stockholders.

Risks Associated with the Reverse Stock Split

There are risks associated with the Reverse Stock Split, including that the Reverse Stock Split may not result in a lasting increase in the per share price of our common stock.

The Company cannot predict whether, or for how long, the Reverse Stock Split will increase the market price for our common stock. The history of similar stock split combinations for companies in like circumstances is varied. There is no assurance that:

the market price per share will achieve the $1.00 minimum bid price requirement for a sufficient period for our common stock to regain listing of our common stock on Nasdaq;

we would otherwise meet the requirements that would allow us to regain listing of our common stock on Nasdaq;

the market price per share of our common stock after the Reverse Stock Split will rise in proportion to the reduction in the number of shares of our common stock outstanding before the effective time of the Reverse Stock Split (the “Effective Time”);

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the Reverse Stock Split will result in a per share price that will attract brokers and investors who do not trade in lower-priced stocks;

the