Company: EQS
Filing Date: 2025-04-23
Form Type: PRE 14A
Source: 0001712543-25-000025
Chunk: 50

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-23
Form: PRE 14A
Chunk 50
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 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 of Not Obtaining Required Vote for Approval of the Stock Issuance Proposal

If we are unable to obtain approval of the Stock Issuance
Proposal, we will be unable to issue shares of common stock upon conversion of the Convertible Securities or in connection with a Future
Offering to the extent such issuance would exceed 19.99% of the outstanding shares of our common stock. If we are unable to issue shares
of common stock upon conversion of the Convertible Securities on the terms currently contemplated or in connection with Future Offerings
on terms reasonably determined by our Board, we may be required to pursue other alternatives to strengthen our liquidity position. These
alternatives may include (subject to market conditions) the issuance of nonconvertible debt, the potential sale of our assets and/or other
strategic transactions and/or other measures. These alternatives involve significant uncertainties, potential significant delays, costs
and other risks, and there can be no assurance that any