Company: PTPI
Filing Date: 2025-03-14
Form Type: PRER14A
Source: 0001104659-25-024012
Chunk: 37

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-03-14
Form: PRER14A
Chunk 37
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, subject to the Series A Floor Price and Series B Floor Price, respectively, pursuant to the operation of Share Combination
Event Adjustment provision, to the lesser of (i) the then exercise price and (ii) lowest daily VWAP the period commencing five
trading days immediately preceding and the five trading days commencing on the date we effect a reverse stock split with a proportionate
adjustment to the number of shares underlying such Series A Warrants and Series B Warrants. Issuances of additional shares in
connection with such Share Combination Event Adjustment provision could result in our shareholders suffering substantial dilution.

If our Common Stock is delisted
from Nasdaq, the Board believes that the trading market for our Common Stock could become significantly less liquid, which could reduce
the trading price of our Common Stock and increase the transaction costs of trading in shares of our Common Stock.

We believe that the Reverse
Stock Split is our best option to meet the criteria to satisfy the minimum per share bid price requirement for continued listing on The
Nasdaq Capital Market. A decrease in the number of outstanding shares of our Common Stock resulting from the Reverse Stock Split should,
absent other factors, assist in ensuring that the per share market price of our Common Stock remains above the requisite price for continued
listing. However, we cannot provide any assurance that our minimum bid price would remain over the minimum bid price requirement of The
Nasdaq Capital Market following the Reverse Stock Split.

In addition, as noted above,
we believe that the Reverse Stock Split and the resulting increase in the per share price of our Common Stock could encourage increased
investor interest in our Common Stock and promote greater liquidity for our stockholders. A greater price per share of our Common Stock
could allow a broader range of institutions to invest in our Common Stock (namely, funds that are prohibited or discouraged from buying
stocks with a price below a certain threshold), potentially increasing marketability, trading volume and liquidity of our Common Stock.
Many institutional investors view stocks trading at low prices as unduly speculative in nature and, as a result, avoid investing in such
stocks. We believe that the Reverse Stock Split will provide the Board flexibility to make our Common Stock a more attractive investment
for these institutional investors, which we believe will enhance the liquidity for the holders of our Common Stock and may facilitate
future sales of our Common Stock. The Reverse Stock Split could also increase interest in our Common Stock for analysts and brokers who
may otherwise have policies that discourage or prohibit them from following