Company: CMCT
Filing Date: 2025-08-15
Form Type: PRE 14A
Source: 0001104659-25-079235
Chunk: 31

Company: Creative Media & Community Trust Corp
Filing Date: 2025-08-15
Form: PRE 14A
Chunk 31
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 of the voting power of the outstanding Common Stock immediately prior to the effectiveness of the 1:7 Reverse Stock Split will generally continue to hold approximately two percent (2%) of the voting power of the outstanding Common Stock immediately thereafter. Moreover, the number of stockholders of record of our Common Stock will not be affected by the 1:7 Reverse Stock Split.

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The Proposed 1:7 Amendment, if adopted, will not change the terms of our Common Stock or Preferred Stock. Upon effectiveness of the 1:7 Reverse Stock Split, the shares of Common Stock will have the same voting rights and rights to dividends and other distributions and will be identical in all other respects to the Common Stock now authorized. Following the 1:7 Reverse Stock Split, the Common Stock will remain fully paid and non-assessable.

Upon the effectiveness of the 1:7 Reverse Stock Split, the par value of our Common Stock will increase proportionately to the 1:7 ratio of the 1:7 Reverse Stock Split. However, the Board will exercise its right under Section 2-605(a)(2) of the MGCL to thereafter immediately reduce the resulting par value of the post-split Common Stock so that it will remain at $0.001 per share.

Effects on the Number of Authorized Shares.

The total number of shares of capital stock that we are authorized to issue will not be affected by the 1:7 Reverse Stock Split and will remain at one billion (1,000,000,000) shares of stock, consisting of nine hundred million (900,000,000) shares of Common Stock and one hundred million (100,000,000) shares of Preferred Stock. Although the number of authorized shares of capital stock will not change as a result of the 1:7 Reverse Stock Split, the number of shares of Common Stock issued and outstanding will be reduced in proportion to the 1:7 ratio of the 1:7 Reverse Stock Split. Thus, the 1:7 Reverse Stock Split will effectively increase the number of authorized and unissued shares of Common Stock available for future issuance by the amount of the reduction effected by the 1:7 Reverse Stock Split. The relative increase in the amount of authorized and unissued shares of Common Stock will allow for the ability to issue additional shares in connection with future financings, equity incentive plans and other desirable corporate activities without requiring our stockholders to approve an increase in the authorized number of shares of capital stock each time any