Company: CERO
Filing Date: 2025-11-28
Form Type: DEF 14A
Source: 0001213900-25-115783
Chunk: 18

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-28
Form: DEF 14A
Chunk 18
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securities to their clients lower -pricedsecurities. Many institutional investors have policies prohibiting them from holding lower -pricedstocks in their portfolios, which reduces the number of potential purchasers of our Common Stock. Investment funds may also be reluctant to invest in lower -pricedstocks. Investors may also be dissuaded from purchasing lower -pricedstocks because the brokerage commissions, as a percentage of the total transaction, tend to be higher for such stocks. Moreover, the analysts at many brokerage firms do not monitor the trading activity or otherwise provide coverage of lower -pricedstocks. Giving the Board the ability to effect the Reverse Stock Split, and thereby increase the price of our Common Stock, would give the Board the ability to address these issues if it is deemed necessary. Improve the Perception of Our Common Stock as an Investment Security The Board believes that effecting the Reverse Stock Split is one potential means of increasing the share price of our Common Stock to improve the perception of our Common Stock as a viable investment security. Lower -pricedstocks have a perception in the investment community as being risky and speculative, which may negatively impact not only the price of our Common Stock, but also our market liquidity. 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 an increase in the per share price of our Common Stock. The Company cannot predict whether 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 maintain the $1.00 minimum bid price requirement for listing by 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”); 8 •the Reverse Stock Split will result in a per share price that will attract brokers and investors who do not trade in lower -pricedstocks; •the Reverse Stock Split will result in a per share price that will increase the ability of the Company to attract and retain employees; and •the Reverse Stock Split would promote greater liquidity for our shareholders with respect to their shares. We are also currently not in compliance with the minimum stockholders’ equity requirement for continued listing of our Common Stock on Nasdaq and the Reverse Stock Split will not affect our ability to regain compliance with such requirement. In addition,