Company: TELO
Filing Date: 2025-11-28
Form Type: PRER14A
Source: 0001493152-25-025406
Chunk: 72

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-11-28
Form: PRER14A
Chunk 72
---
 are no employees, and the exclusive license is not accompanied by any
documented processes, proprietary manufacturing methods, or other intangible capabilities that could be applied to generate economic
returns. Accordingly, the acquired asset will not qualify as a business under the definitions in ASC 805 and SEC Regulation S-X, Article
11 and therefore for accounting purposes will be treated as an asset acquisition from a related party under the guidance in SEC Staff
Accounting Bulletin 5-G.

The contingent consideration to TELO in the transaction
consists of two possible payments. Certain shareholders of TELI will agree to provide $2 million upon FDA acceptance of an Investigational
New Drug (IND) application for Telomir-1, and $2 million upon initiation of a Phase 1/2 study.

Upon Closing, we will issue a certain number of
new common shares and warrants in TELO to the TELI shareholders and warrant holders, as specified in the Merger Agreement. Immediately
following the Merger, the pre-Merger equity holders of TELO are expected to hold approximately 50% of the outstanding shares of TELO
Common Stock and the pre-Merger equity holders of TELI are expected to hold approximately 50% of the outstanding shares of TELO Common
Stock. As specified in the Merger Agreement, the number of shares to be issued cannot exceed the number of TELO shares outstanding prior
to the merger. The Company had 34,380,971 shares outstanding as of November 20, 2025. The final number of shares to be issued will be
determined in the Closing of the Merger. For illustrative purposes, the pro forma financial statements assume that 34,380,950 shares
in TELO will be issued to the TELI shareholders, valued at $1.31, the Closing Price on November 25, 2025. The excess fair value of the
TELO common shares issued over the $1,000,000 net assets received will be reflected as a deemed dividend with a charge to additional
paid-in capital of $44,039,045. In addition to the Merger Consideration, Erez Aminov and Bayshore Trust, shareholders of TELI, hold 4,250,000
and 10,000,000 warrants, respectively, to purchase TELI Common Stock (the “Warrants”). The Warrants are exercisable upon
FDA acceptance of an Investigational New Drug (IND) application for