Company: CERO
Filing Date: 2025-05-07
Form Type: DEF 14A
Source: 0001213900-25-040263
Chunk: 41

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-07
Form: DEF 14A
Chunk 41
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, or approximately 93.9% of the outstanding shares of Common Stock. Although the COD does not contain the adjustments to the Alternate Conversion procedures contained in the terms of the Company’s outstanding Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock applicable when the Alternate Conversion Price is less than the Floor Price, the Floor Price does not apply to adjustments in connection with the issuance of securities at prices below the then -currentconversion price. As a result, following such issuances, the conversion price may be adjusted to a price below the Floor Price, resulting in the issuance of more than 80,128,205shares of Common Stock. In addition, under the terms of the Series D Preferred Stock, an April 2025 Investor may not convert the Series D Preferred Stock to the extent (but only to the extent) such April 2025 Investor or any of its affiliates would beneficially own a number of shares of Common Stock which would exceed 4.99%, or, at the election of the April 2025 Investor, a number of shares of Common Stock which would exceed 9.99%. April 2025 Private Placement In April 2025, the Company consummated the April 2025 Private Placement of 6,250shares of Series D Preferred Stock pursuant to the April 2025 Securities Purchase Agreement, dated April 21, 2025 (the “April 2025 Securities Purchase Agreement”), for aggregate proceeds of approximately $5 million, paid in cash or through the transfer of certain Transfer Shares (as defined in the April 2025 Securities Purchase Agreement) in lieu of cash, and agreed to issue up to 3,750 additional shares of Series D Preferred Stock for cash proceeds of up to $3million at one or more additional closings. Each additional closing of the April 2025 Private Placement is at the option of the April 2025 Investors upon notice to the Company and subject to satisfaction of customary closing conditions. Description of Securities See “ Description of Capital Stock” for a description of the Series D Preferred Stock. Impact on Stockholders of Approval or Disapproval of this Proposal If this proposal is approved, existing stockholders will suffer dilution in ownership interests and voting rights as a result of the issuance of shares of Common Stock upon the conversion of the shares of Series D Preferred Stock. Assuming the issuance of all shares of Common Stock upon conversion of the Series D Preferred Stock, the April 2025 Investors would own approximately 12,820,513shares of Common Stock, assuming