Company: HRTX
Filing Date: 2025-09-19
Form Type: DEF 14A
Source: 0001193125-25-209064
Chunk: 13

Company: HERON THERAPEUTICS, INC. /DE/
Filing Date: 2025-09-19
Form: DEF 14A
Chunk 13
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, subject to certain limited exceptions, no holder of Series A Convertible Preferred Stock may convert the Series A Convertible Preferred Stock if, after giving effect to the conversion, the holder and all affiliated persons would own beneficially more than 4.99% of Common Stock, subject to adjustment up to 9.99% or 19.99% solely at the holder’s discretion (the “Beneficial Ownership Limitation”); provided that in no event shall the Beneficial Ownership Limitation exceed 19.99% of the number of shares of the Company’s Common Stock issued and outstanding prior to such issuance. A holder may, upon notice to the Company, increase or decrease the Beneficial Ownership Limitation but any such increase will not be effective until the 61stday after such notice is delivered to the Company.

The Company is seeking the Series A Preferred Stockholder Approval to approve, under Nasdaq Listing Rule 5635(d), the issuance of a number of shares of the Company’s Common Stock upon the conversion of the Series A Convertible Preferred Stock held by several non-affiliated holders pursuant to the Purchase Agreement, which could, under certain circumstances that may occur in the future, exceed 19.99% of the number of shares of the Company’s Common Stock issued and outstanding prior to such issuance (the “Preferred Stock Issuances”).

Our Common Stock is currently listed on the Nasdaq Capital Market and, as such, we are subject to Nasdaq Marketplace Rules. Nasdaq Listing Rule 5635(d) requires us to obtain stockholder approval prior to the issuance of our Common Stock in connection with certain non-public offerings involving the sale, issuance or potential issuance by the Company of Common Stock and/or securities convertible into or exercisable for common stock equal to 20% or more of the Common Stock outstanding before the issuance at a price less than the “Minimum Price.” Shares of our Common Stock issuable upon the exercise or conversion of warrants, options, debt instruments or other equity securities issued or granted in such non-public offerings will be considered shares issued in such a transaction in determining whether the 20% limit has been reached, except in certain circumstances. The “Minimum Price” is the lower of: (i) the Nasdaq Official Closing Price of the Common Stock; or (ii) the average Nasdaq Official Closing Price of the Common Stock for the five trading days, in either case immediately preceding the signing of a binding agreement.

Given the foregoing, we are seeking the Series A Preferred Stockholder Approval under this Proposal