Company: EQS
Filing Date: 2025-04-23
Form Type: PRE 14A
Source: 0001712543-25-000025
Chunk: 49

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-23
Form: PRE 14A
Chunk 49
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 proposal, such authorization
is hereinafter referred to as the “Stock Issuance Proposal”.

Reason for Request for Stockholder Approval

Our Common Stock is listed on NYSE and, as a result,
the Company is subject to the rules and regulations of NYSE. Section 312.03 of the NYSE Listing Manual requires an issuer to obtain stockholder
approval prior to the issuance of common stock in any transaction or series of related transactions, if, among other things: (i) the common
stock has, or will have upon issuance, voting power equal to or in excess of 19.99% of the voting power outstanding before the issuance
of such stock; or (ii) the number of shares of common stock to be issued is, or will be upon issuance, equal to or in excess of 19.99%
of the number of shares of common stock outstanding before the issuance of common stock.

The approval of the Company’s stockholders is
required because, in the event that the holders of the Convertible Securities elect to convert these instruments into common stock, the
Company will be required to issue more than 19.99% of its currently outstanding common stock to effect such conversion.

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Approval of the Company’s stockholders is also
required because, in addition to the Convertible Securities, the

Company may seek to issue shares of common stock or securities
convertible into common stock in one or more future offerings (“Future Offerings”). It is likely that the
number of shares of common stock issued in connection with any such Future Offerings will also exceed 19.99% of our current
outstanding shares.

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