Company: CERO
Filing Date: 2025-11-17
Form Type: PRE 14A
Source: 0001213900-25-111175
Chunk: 31

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-17
Form: PRE 14A
Chunk 31
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 Series E Preferred Stock currently has a conversion price greater than or equal to the Minimum Price as of the date of the October 2025 Securities Purchase Agreement (as defined below). However, pursuant to the COD, the Company has agreed to seek stockholder approval at a special meeting of stockholders, of the issuance of Conversion Shares (as defined in the COD) at a conversion price below the Conversion Price (as defined in the COD). If, on or after the date of stockholder approval, the Company issues any shares of Common Stock for a consideration per share (the “New Issuance Price”) less than a price equal to the Conversion Price in effect immediately prior to such issuance (each, a “Dilutive Issuance”), the Conversion Price shall be reduced to the New Issuance Price; provided that, if any Dilutive Issuances or other events that would have resulted in an adjustment to the Conversion Price prior to the date of stockholder approval, the Conversion Price shall automatically adjust to such New Issuance Price on the date of stockholder approval. The issuance of Common Stock upon the conversion of the Series E Preferred Stock at such a reduced conversion or exercise price may result in certain investors in the October 2025 Private Placement (the “October 2025 Investors”) acquiring more than 20% of the amount of Common Stock issued and outstanding prior to the October 2025 Private Placement at a price below the Minimum Price. Accordingly, the Company needs stockholder approval of the issuance of shares of Common Stock upon any such reset of the conversion of the Series E Preferred Stock. On the Record Date, assuming the issuance of all shares of Common Stock upon conversion of all of the shares of the Series E Preferred Stock (including the 3,816 shares of Series E Preferred Stock issued and outstanding and the 5,934 shares of Series E Preferred Stock that may be issued in additional closings), the October 2025 Investors would own approximately 2.3 million shares of Common Stock, assuming conversion at the initial conversion price of $4.1625 per share. Such shares would constitute approximately 10.1% of the then -outstandingCommon Stock after the issuance of such shares. Potential Adjustments Because the conversion price of the Series E Preferred Stock may be adjusted, the number of shares that will actually be issued may be more or less than such number of shares. Such adjustments include (i) adjustments to the conversion price upon the occurrence of an Adjustment Date, (ii) the application of the Alternate Conversion