Company: CERO
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001213900-25-004742
Chunk: 133

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 133
---
 shares of Series A Warrants and warrants to purchase 2,500 shares of Preferred Warrants, pursuant to the Amended and Restated Securities Purchase Agreement, dated February 14, 2024, by and among PBAX, Legacy CERo and certain accredited investors (the “Initial Investors”) for aggregate cash proceeds to CERo of approximately $8.0 million, plus additional cash proceeds of $2.0 million on the mandatory exercise of the Preferred Warrants on the registration of the underlying common shares. A portion of such Series A Preferred Stock was issued as consideration for the cancellation of outstanding indebtedness or securities of PBAX or Legacy CERo, including a promissory note of PBAX and the Convertible Bridge Notes. 75 In addition, CERo entered into a side letter with Keystone, pursuant to which CERo agreed to make a payment of $1.0 million to Keystone, which amount reflects an original issue discount to Keystone, and to reimburse $150,000 of legal expenses incurred thereby. In addition, the Sponsor agreed to transfer an aggregate of 250,000 shares of Class A Common Stock to another investor as consideration for their participation in the PIPE Financing. On February 14, 2024, as a condition to the closing of the PIPE Financing, CERo entered into the Old Keystone Purchase Agreement with Keystone, pursuant to which CERo may sell and issue, and Keystone is obligated to purchase, up to the lesser of $25 million of Common Stock or a limit determined by maximum ownership percentages (the “Keystone Equity Financing”). On February 23, 2024, CERo entered into Arena Purchase Agreement, pursuant to which CERo may sell and issue, subsequent to the Keystone Equity Financing being terminated or fully subscribed, and Arena is obligated to purchase, up to $25 million of Common Stock or a limit determined by maximum ownership percentages (the “Arena Equity Financing”). Each of the Keystone Equity Financing and Arena Equity Financing is in place, but there was no accounting impact on the date of the transaction. The following summarizes the pro forma ownership of Common Stock following the Business Combination

|                                                     |     | Shares |            |     | % |       |   |
| Public shares(1)                                    |     |        |     82,047 |     |   |   0.6 | % |
| Common shares issued to Legacy CERo stockholders(2) |     |        |  8,075,000 |     |