Company: EQS
Filing Date: 2025-05-12
Form Type: DEF 14A
Source: 0001712543-25-000028
Chunk: 50

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-05-12
Form: DEF 14A
Chunk 50
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 Offerings will also exceed 19.99% of our current outstanding shares.

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The shares of common stock that are proposed to be
issued upon conversion of the Convertible Securities and in connection with any Future Offerings will have the same rights and privileges
as the shares of our common stock currently authorized and outstanding. Holders of common stock received from the conversion of the Convertible
Securities are not entitled to preemptive rights to purchase common stock or other securities, or to cumulative voting rights in relation
to the foregoing, and holders of common stock received in connection with Future Offerings will similarly not be entitled to such rights.

The Board believes that authorizing the issuance of
additional shares of common stock upon conversion of the Convertible Securities and in connection with Future Offerings is fair to and
in the best interests of the Company and the Company’s stockholders.

Effect of Vote in Favor of the Stock Issuance Proposal

A vote in favor of the Stock Issuance Proposal is
a vote in favor of approving, for purposes of the rules of the NYSE, the issuance of shares of common stock upon conversion of the Convertible
Securities and in connection with Future Offerings that exceeds 19.99% of its currently outstanding common stock as calculated prior to
any such issuance. Approval of the Stock Issuance Proposal will allow us to, subject to the satisfaction of other conditions (including
the approval of the issuance of shares of common stock below NAV in Proposal 4), issue shares of common stock upon conversion of the Convertible
Securities and in connection with Future Offerings.

Approval of the Stock Issuance Proposal will not affect
the rights of current holders of outstanding shares of common stock. Approval will, however, allow us to, subject to the satisfaction
of other conditions, issue a significant number of additional shares of common stock. In the event that the Convertible Securities are
converted into shares of common stock or we issue shares of common stock in Future Offerings, the issuance of such shares is expected
to cause a significant dilution in the relative percentage interests of our current stockholders. Sales of substantial amounts of common
stock in the public market, or the perception that these sales could occur, coupled with the increase in the outstanding number of shares
of common stock relative to shares of common stock currently outstanding, could cause the market price of our common stock to decline.
See “Security Ownership of Certain Beneficial Owners and Management” and “Risk Factors” above.

Effect