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

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-17
Form: PRE 14A
Chunk 17
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market. Many investors likely would not buy or sell our Common Stock due to difficulty in accessing over -the-countermarkets, policies preventing them from trading in securities not listed on a national exchange, or other reasons. In that event, the Common Stock could trade thinly as a microcap or penny stock, adversely decrease to nominal levels of trading and may be avoided by retail and institutional investors, resulting in the impaired liquidity of our Common Stock. As of the Record Date, our Common Stock closed at $0.089 per share on the OTC Pink Sheets. The Reverse Stock Split, if effected, should have the immediate effect of increasing the price of our Common Stock, therefore potentially allowing us satisfy the Bid Price Requirement and regain listing on Nasdaq. However, the price of our Common Stock has declined after each prior reverse stock split and we cannot assure you that the price of our Common Stock will not decline after the Reverse Stock Split as well. Our Board strongly believes that the Reverse Stock Split is necessary to regain listing on Nasdaq and to thereby provide us with a market for our Common Stock that is more accessible than our current market, OTC Pink Sheets. Accordingly, the Board recommended that our shareholders approve the Reverse Stock Split Proposal to effect the Reverse Stock Split and directed that this proposal be submitted to our shareholders for approval at the Special Meeting, including for the reasons discussed below. Appeal to a Broader Range of Investors to Generate Greater Investor Interest in the Company An increase in our stock price may make our Common Stock more attractive to investors. Brokerage firms may be reluctant to recommend lower -pricedsecurities to their clients lower -pricedsecurities. Many institutional investors have policies prohibiting them from holding lower -pricedstocks in their portfolios, which reduces the number of potential purchasers of our Common Stock. Investment funds may also be reluctant to invest in lower -pricedstocks. Investors may also be dissuaded from purchasing lower -pricedstocks because the brokerage commissions, as a percentage of the total transaction, tend to be higher for such stocks. Moreover, the analysts at many brokerage firms do not monitor the trading activity or otherwise provide coverage of lower -pricedstocks. Giving the Board the ability to effect the Reverse Stock Split, and thereby increase the price of our Common Stock, would give the Board the ability to address these issues if it is deemed necessary. Improve the Perception of Our Common Stock as an Investment Security The Board believes that effecting the Reverse Stock Split is one potential means of increasing the share price of our Common Stock to improve the perception