Company: CMCT
Filing Date: 2025-02-24
Form Type: PRE 14A
Source: 0001104659-25-016503
Chunk: 13

Company: Creative Media & Community Trust Corp
Filing Date: 2025-02-24
Form: PRE 14A
Chunk 13
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 Articles of Amendment are accepted for record by the State Department of Assessments and Taxation of Maryland (the “

#### Maryland SDAT
”).

#### Reasons for the Reverse Stock Split
As discussed above in “General Overview,” the proposed Reverse Stock Split is intended to adjust the bid price of the Common Stock upward in an effort to regain compliance with Nasdaq’s Minimum Bid Price Rule. Our Board believes that that the Reverse Stock Split ratio of 1:25 is in the best interest of the Company and that such ratio will improve the price level of our Common Stock so that we are able to comply with the Nasdaq Minimum Bid Price Rule. However, we cannot assure you that after the Reverse Stock Split the market price of our Common Stock will increase proportionately to reflect the ratio for the Reverse Stock Split, that the market price of our Common Stock will not decrease to its pre-split level, that our market capitalization will be equal to the market capitalization before the Reverse Stock Split or that we will be able to maintain our listing on Nasdaq.

#### Consequences of Not Approving this Proposal
If Proposal 1 is not approved at the Special Meeting, it could result in material adverse consequences for the Company. For more information, see “General Overview — Purposes of the Proposals and Consequences of Not Approving Them.”

Potential Adverse Effects of Approving this Proposal

We cannot assure you that the Reverse Stock Split will increase our stock price and have the desired effect of restoring and maintaining compliance with the Nasdaq Minimum Bid Price Rule.

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The Board expects that the Reverse Stock Split will increase the market price of our Common Stock so that we are able to regain and help maintain compliance with the Nasdaq Minimum Bid Price Rule. However, the effect of the Reverse Stock Split on the market price of our Common Stock cannot be predicted with any certainty, and the history of similar reverse stock splits for companies in like circumstances is varied.

It is possible that the per share price of our Common Stock after the implementation of the Reverse Stock Split will not rise in proportion to the reduction in the number of shares of Common Stock outstanding resulting therefrom, and the market price per share after the Reverse Stock Split may not exceed or remain in excess of $1.00 per share for a sustained period of time. Even if we effect the Reverse Stock Split, the market price of our Common Stock may decrease due to factors unrelated to the Reverse Stock Split, including our future financial and operating performance. If the Reverse Stock Split