Company: SHPH
Filing Date: 2025-04-22
Form Type: PRER14A
Source: 0001641172-25-005648
Chunk: 7

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-04-22
Form: PRER14A
Chunk 7
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 or other securities of the Company. We have not determined the particular terms for such prospective Committed Equity Financing and the Company may issue shares of Common Stock, other securities of the Company, and/or any combination thereof pursuant to the Purchase Agreement in connection with a Committed Equity Financing. Because we may take actions and seek additional capital that triggers the requirements of Nasdaq Rule 5635(d), we are seeking stockholder approval now, so that we will be able to move quickly to take full advantage of any opportunities that may develop.

The proposed Committed Equity Financing will occur, if at all, approximately three (3) months after the date of the Special Meeting, unless a shorter time is required by Nasdaq.

Nasdaq Marketplace Requirements and the Necessity of Stockholder Approval

Our Common Stock is listed on the Nasdaq Capital Market and, as such, we are subject to the Nasdaq rules. Nasdaq Rule 5635(d) requires the Company to obtain stockholder approval prior to the issuance of shares of Common Stock in connection with certain non-public offerings involving the sale, issuance or potential issuance by the Company of shares of Common Stock (and/or securities convertible into or exercisable for shares of Common Stock) equal to 20% or more of the shares of Common Stock outstanding prior to such issuance where the price of the Common Stock to be issued is below the “Minimum Price.” The “Minimum Price” is defined as a price equal to the lower of: (i) the Nasdaq Official Closing Price (as reflected on Nasdaq.com) immediately preceding the signing of the binding agreement; or (ii) the average Nasdaq Official Closing Price of the common stock (as reflected on Nasdaq.com) for the five trading days immediately preceding the signing of the binding agreement. Shares of common stock issuable upon the exercise or conversion of warrants, options, debt instruments, preferred stock or other equity securities issued or granted in such non-public offerings will be considered shares issued in such a transaction in determining whether the 20% limit has been reached, except in certain circumstances such as issuing warrants that are not exercisable for a minimum of six months and have an exercise price that exceeds market value.

We would not issue or sell any shares of Common Stock or other securities of the Company, and the Investor would not purchase or acquire any such shares of Common Stock or other Company securities pursuant to the Purchase Agreement, to the extent that after giving effect thereto, the aggregate number of shares of Common Stock that would be issued pursuant to the Purchase Agreement