Company: CERO
Filing Date: 2025-04-25
Form Type: PRE 14A
Source: 0001213900-25-035562
Chunk: 38

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-25
Form: PRE 14A
Chunk 38
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5635, UPON THE EXERCISE OF FEBRUARY 2025 COMMON WARRANTS AT AN EXERCISE PRICE BELOW THE MINIMUM PRICE. |     | ü |

18 PROPOSAL NO. 3: NASDAQ STOCK ISSUANCE (SERIES D) PROPOSAL Overview As described in more detail below, in April 2025, the Company issued an aggregate of 6,250shares of Series D Preferred Stock in the April 2025 Private Placement (the “April 2025 Private Placement”) and agreed to issue up to 3,750 additional shares of Series D Preferred Stock at one or more additional closings, at the election of the investors in such transaction. The Common Stock is listed on the Nasdaq Capital Market, and, as such, the Company is subject to the applicable rules of Nasdaq, including Nasdaq Listing Rules 5635(b) and 5635(d). Nasdaq Listing Rule 5635(b) requires the Company to obtain stockholder approval prior to certain issuances with respect to Common Stock or securities convertible into Common Stock which could result in a change of control of the issuer. Generally, Nasdaq interpretations provide that the acquisition of 20% of the shares of an issuer by one person or group of affiliated persons may be considered a change of control of such issuer. Nasdaq Listing Rule 5635(d) requires the Company to obtain stockholder approval prior to certain issuances with respect to Common Stock or securities convertible into Common Stock other than in a public offering if the price is below the “Minimum Price” (as determined in accordance with Nasdaq rules) in an amount greater than or equal to 20% of the number of shares of Common Stock outstanding prior to such issuance, regardless of whether such shares are issued to one person or group or are more widely distributed. The Series D Preferred Stock currently has a conversion price greater than or equal to the Minimum Price as of the date of the April 2025 Securities Purchase Agreement (as defined below). However, the Certificate of Designation of the Series D Preferred Stock contains adjustment provisions that provide for the reduction of the conversion or exercise price thereof upon certain issuances of securities by the Company at an offering price below such conversion or exercise price on the 30 thand 60 thday following the later of (x) the stockholder approval sought by this proposal and (y) the earlier of (i) the availability of Rule 144 under the Securities Act for the resale of the shares issuable upon conversion thereof