Company: SHPH
Filing Date: 2025-04-10
Form Type: PRER14A
Source: 0001641172-25-003635
Chunk: 43

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-04-10
Form: PRER14A
Chunk 43
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 the remaining unconverted principal amount.

| 30 |

Repricing

The Convertible Notes contain certain anti-dilution clauses which provide the investors a one-time price match if the Company issues equity at a lower price in the future prior to the maturity date of such Convertible Notes. On March 13, 2025, the Company closed a follow-on underwritten public offering of shares of common stock at a public offering price of $0.30 per share. Accordingly, pursuant to the anti-dilution clauses, the Company repriced the conversion price of the Convertible Notes. As a result of the repricing, an additional 1,663,136 shares of common stock may be issuable upon conversion of the Convertible Notes.

Conversion Limitation and Exchange Cap

The noteholder will not have the right to convert any portion of the Convertible Note, to the extent that, after giving effect to such conversion, the noteholder (together with certain related parties) would beneficially own in excess of 4.99% of the shares of our common stock outstanding immediately after giving effect to such conversion.

In addition, until such time as we obtain stockholder approval from a majority of our stockholders, as required by Nasdaq, concerning the issuance in excess of 19.99% of our common stock, we are prohibited from issuing any shares of common stock upon conversion of the Convertible Notes if the issuance of such shares of common stock would exceed 19.99% of our outstanding shares of common stock as of October 21, 2024, the final closing date of the offering, or otherwise exceed the aggregate number of shares of common stock which we may issue without breaching our obligations under the rules and regulations of Nasdaq.

Events of Default

The Convertible Notes include certain customary and other Events of Default, including, among other things, failure to pay any amounts due under the Convertible Notes upon Maturity or failure to convert within 10 days of receiving a notice of conversion from an Investor, as well as any material breach of the Company of the Purchase Agreement.

Upon an Event of Default, the noteholder may, at its option, accelerate repayment of the Convertible Note, in which case the principal amount outstanding under each Convertible Note, all interest accrued thereon and all other amounts owing hereunder shall be due and payable immediately; provided that if there shall be a plan of liquidation or the Company’s charter expires or is otherwise revoked, the entire unpaid balance of principal with interest