Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 345

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 345
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 Common Warrants has the right to
acquire the same as if the holder had exercised its February 2024 PIPE Common Warrants. The holders of February 2024 PIPE Common Warrants
are entitled to receive any dividends paid or distributions made to our holders of Common Stock on an “as if converted” basis.

The February 2024 PIPE Common Warrants prohibit
us from entering into specified fundamental transactions unless the successor entity assumes all of our obligations under the February
2024 PIPE Common Warrants under a written agreement before the transaction is completed. Upon specified corporate events, a holder of
February 2024 PIPE Common Warrants will thereafter have the right to receive upon an exercise such shares, securities, cash, assets or
any other property whatsoever which the holder would have been entitled to receive upon the happening of the applicable corporate event
had the February 2024 PIPE Common Warrants been exercised immediately prior to the applicable corporate event. When there is a transaction
involving specified changes of control, a holder of February 2024 PIPE Common Warrants can request the Company to exchange the then unexercised
portion of their February 2024 PIPE Common Warrants for consideration equal to the Black-Scholes value thereof, which shall be settled,
at the option of the Company in either (i) the form of rights convertible into the consideration receivable by holders of the underlying
shares of common stock, based upon the value of the shares of the successor entity over a specified period or (ii) cash in an amount
equal to the Black-Scholes value.

The Company’s February 2024 PIPE Common
Warrants are exercisable into Common Stock, which has no cash redemption features that require liability treatment. The Company has recorded
the February 2024 PIPE Common Warrants as equity.

September 2024 PIPE Common Warrants (Successor)

The Company’s September 2024 PIPE Common
Warrants are initially exercisable for cash at an initial exercise price equal to $9.80 (as adjusted for stock splits, stock dividends,
stock combinations, recapitalizations and similar events). The exercise price is also subject to adjustment for the sale of Common Stock,
or issuance or modification of options to a result in the purchase of a Common Share at an effective price per share lower than the then
current September 2024 PIPE Common Warrant exercise price. Additionally, should the Company issue any variable priced convertible securities,
the holders may elect an alternative exercise price that allows exercise at the effective purchase price