Company: CMCT
Filing Date: 2025-03-06
Form Type: DEF 14A
Source: 0001104659-25-021357
Chunk: 13

Company: Creative Media & Community Trust Corp
Filing Date: 2025-03-06
Form: DEF 14A
Chunk 13
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 Reverse Stock Split with a ratio of 1:25 is designed to maximize the anticipated benefits for the Company and its stockholders. In determining the 1:25 ratio of the Reverse Stock Split, our Board considered, among other things, factors such as:

•

the historical trading price and trading volume of our Common Stock;

•

the then prevailing trading price and trading volume of our Common Stock and the anticipated impact of the Reverse Stock Split on the trading market for our Common Stock;

•

our ability to have our Common Stock remain listed on Nasdaq, including the maintenance of the required number of shares of Common Stock registered with Nasdaq;

•

the anticipated impact of the Reverse Stock Split on our ability to raise additional financing;

•

The expected amount of the downward pressure on the bid price of the Common Stock caused by redemptions of Preferred Stock (as described in greater detail in the section titled “The Company’s Nasdaq Listing Deficiencies” above); and

•

prevailing general market and economic conditions.

If the Reverse Stock Split is approved by our stockholders, we will issue a press release announcing the Effective Date (as defined below) of the Reverse Stock Split and will file Articles of Amendment, substantially in the form attached hereto as Appendix A (the “

#### Proposed Amendment
”), to effect the Reverse Stock Split. The Reverse Stock Split will become effective upon the effective time stated in the Articles of Amendment (the “

#### Effective Date
”), after the Articles of Amendment are accepted for record by the State Department of Assessments and Taxation of Maryland (the “

#### Maryland SDAT
”).

#### Reasons for the Reverse Stock Split
As discussed above in “General Overview,” the proposed Reverse Stock Split is intended to adjust the bid price of the Common Stock upward in an effort to regain compliance with Nasdaq’s Minimum Bid Price Rule. Our Board believes that that the Reverse Stock Split ratio of 1:25 is in the best interest of the Company and that such ratio will improve the price level of our Common Stock so that we are able to comply with the Nasdaq Minimum Bid Price Rule. However, we cannot assure you that after the Reverse Stock Split the market price of our Common Stock will increase proportionately to reflect the ratio for the Reverse Stock Split, that the market price of our Common Stock will not decrease to its pre-split level, that our market capitalization will be equal to the market capitalization before the Reverse Stock Split or that we will be able to maintain our listing on Nasdaq.

#### Consequences of Not Appro