Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 391

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 391
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 to their
warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with respect to such
warrants. Accordingly, the warrants may expire worthless.

In addition, if the Company issues additional common
stock or equity-linked securities for capital raising purposes in connection with the closing of a business combination at an issue price
or effective issue price of less than $9.20 per share of common stock (with such issue price or effective issue price to be determined
in good faith by the Company’s board of directors, and in the case of any such issuance to the Initial Stockholders or their affiliates,
without taking into account any Founder Shares held by them prior to such issuance) (the “Newly Issued Price”), and (y) the
aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for
the funding of a business combination on the date of the consummation of a business combination (net of redemptions), and (z) the
volume weighted-average trading price of the Company’s common stock during the 20-trading-day period starting on the
trading day prior to the day on which the Company consummates a business combination (such price, the “Market Value”) is
below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the greater of
(i) the Market Value or (ii) the Newly Issued Price, and the $18.00

<div align='center'>F-44

PHOENIX BIOTECH ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2023</div>

Note 8 — Fair Value Measurements

The fair value of the Company’s financial
assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale
of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the
measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of
observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions
about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and
liabilities based on the observable inputs and unobservable inputs used in