Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 222

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 222
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 addition, each outstanding Predecessor convertible bridge note was exchanged for shares of Series A Preferred Stock.

In addition, the holders
of Predecessor common stock and Predecessor preferred stock have the contingent right to receive the Earnout Shares. At the Closing,
the Company issued three pools of shares of Common Stock subject to forfeiture if the applicable conditions to transferability thereof
are not satisfied: (i) 12,000 shares of Common Stock (giving retroactive effect to the Reverse Stock Split), which will be fully vested
upon the achievement of certain adjusted stock price-based earnout targets or upon a qualifying transaction (ii) 8,750 shares of Common
Stock (giving retroactive effect to the Reverse Stock Split), pursuant to a Letter Agreement, dated as of February 14, 2024 which were
fully vested at Closing of the Merger and which were issued as an offset to the Sponsor Share Forfeiture Agreement, and (iii) 10,000
shares of Common Stock (giving retroactive effect to the Reverse Stock Split), which were fully vested upon the June 28, 2024 achievement
of certain regulatory milestone-based earnout targets.

As consideration for the
Merger, the Company issued to Predecessor stockholders an aggregate of 84,483 shares of Common Stock, including 22,000 Earnout Shares
and 3,733 shares issuable upon exercise of rollover options or warrants (giving retroactive effect to the Reverse Stock Split).

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February 2024 PIPE Financing

In February 2024, the Company
consummated the first tranche of a private placement of 10,039 shares of the Series A Preferred Stock, issuance of common warrants to
purchase 6,127 shares of Common Stock (giving retroactive effect to the Reverse Stock Split) and warrants to purchase 2,500 shares of
Series A Preferred Stock, pursuant to the Amended and Restated Securities Purchase Agreement, dated February 14, 2024, by and among Predecessor,
PBAX and certain accredited investors for aggregate cash proceeds to the Company of approximately $10.0 million, including cash previously
received for bridge loan proceeds. A portion of the Series A Preferred Stock was issued as consideration for the cancellation of outstanding
indebtedness or securities of Predecessor or PBAX, including a promissory note of PBAX and certain convertible bridge notes of Predecessor.
Such transactions collectively