Company: CMCT
Filing Date: 2025-08-27
Form Type: DEF 14A
Source: 0001104659-25-083990
Chunk: 19

Company: Creative Media & Community Trust Corp
Filing Date: 2025-08-27
Form: DEF 14A
Chunk 19
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 reporting and other requirements of the Exchange Act. The proposed 1:4 Reverse Stock Split will not affect our status as a public company or this registration under the Exchange Act. The 1:4 Reverse Stock Split is not intended to have the effect of a “going private transaction” covered by Rule 13e-3 under the Exchange Act.

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Odd Lot Transactions .

It is likely that some of our stockholders will own “odd-lots” of less than 100 shares of Common Stock following the 1:4 Reverse Stock Split. A purchase or sale of less than 100 shares of Common Stock (an “odd lot” transaction) may result in incrementally higher trading costs through certain brokers, particularly “full service” brokers, and generally may be more difficult than a “round lot” sale. Therefore, those stockholders who own less than 100 shares following the 1:4 Reverse Stock Split may be required to pay somewhat higher transaction costs and may experience some difficulties or delays should they then determine to sell their shares.

Possible Anti-Takeover Effects .

If stockholders approve the 1:4 Reverse Stock Split and the Board implements the 1:4 Reverse Stock Split, the 1:4 Reverse Stock Split could have anti-takeover effects because it would result in a proportional increase in the number of authorized shares of capital stock relative to the number of shares of capital stock outstanding after effecting the 1:4 Reverse Stock Split. A relative increase in the number of our authorized shares of capital stock could enable the Board to render more difficult or discourage an attempt by a party attempting to obtain control of the Company by tender offer or other means.

The issuance of capital stock in a public or private sale, merger or similar transaction would increase the number of outstanding shares of capital stock entitled to vote, increase the number of votes required to approve a change of control of the Company, and dilute the interest of a party attempting to obtain control of the Company. Any such issuance could deprive stockholders of benefits that could result from an attempt to obtain control of the Company, such as the realization of a premium over the market price that the attempt could cause. Moreover, the issuance of capital stock to persons friendly to the Board could make it more difficult to remove incumbent officers and directors from office even if the change were favorable to stockholders generally. However, this anti-takeover effect is not the purpose or intent of our Board. We have no present intent to use the relative