Company: CMCT
Filing Date: 2025-03-06
Form Type: DEF 14A
Source: 0001104659-25-021357
Chunk: 12

Company: Creative Media & Community Trust Corp
Filing Date: 2025-03-06
Form: DEF 14A
Chunk 12
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For Proposal 1, we seek stockholder approval of an amendment to the Charter to implement the Reverse Stock Split with a ratio of 1:25, which the Board believes will help the Company regain compliance with the Nasdaq Minimum Bid Price Rule and maintain the Company’s Nasdaq listing.

If Proposal 1 is not approved by stockholders, it could result in material adverse consequences for the Company. If our Common Stock is delisted from Nasdaq, we may be forced to seek to have the Common Stock traded or quoted on the OTC Bulletin Board or in the “pink sheets.” Such alternatives are generally considered to be less efficient markets and not as broad as Nasdaq, and therefore less desirable. If the Company’s Common Stock is delisted from Nasdaq, the Company could face material adverse consequences, including:

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a limited availability of market quotations for the Common Stock;

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reduced liquidity;

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a determination that the Common Stock is a “penny stock,” which will require brokers trading in the Company’s shares to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market for its securities;

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a limited amount of news and analyst coverage for the Company;

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a decreased ability to issue additional securities or obtain additional financing in the future;

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the potential need to register under applicable state securities or “blue sky” laws any Common Stock that is elected by the Company to be issued to redeem Preferred Stock in lieu of cash when the cash required is not available; and

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the potential inability to redeem Preferred Stock when all other criteria for redemption have been met if registration under applicable state securities or “blue sky” laws is not able to be accomplished in a particular state and the cash required for such redemption is not available.

Despite the efforts described above, there can be no assurance that the Company will ultimately regain compliance with the Nasdaq Minimum Bid Price Rule.

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#### Proposal1

### TO APPROVE THE AMENDMENT OF OUR CHARTER TO EFFECT THE REVERSE STOCK SPLIT

### Overview
At the Special Meeting, our stockholders will be asked to approve an amendment to our Charter to effect the Reverse Stock Split. The Reverse Stock Split is a consolidation of the Common Stock by a ratio of 1:25.

If the Reverse Stock Split is approved by our stockholders, then the Company expects to promptly effect the Reverse Stock Split with a ratio of 1:25. Our Board believes that a