Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 712

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 3
Chunk 712
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 was used to finance the Company’s ongoing operations.

Recent
Financings

On
January 11, 2023, the Company entered into a stock purchase agreement (the “SPA”) with the Alto Opportunity Master Fund,
SPC – Segregated Master Portfolio B, a Cayman entity (the “Investor”), pursuant to which the Company sold to the Investor
a $4.3 million convertible note (the “Convertible Note”) and warrant (the “Warrant”) to purchase 127,260 shares
of common stock of the Company, in exchange for gross proceeds of $4.0 million Investment Amount. The Convertible Note amortizes on a
monthly basis and the Company can make such monthly amortization payments in cash or, subject to certain equity conditions, in registered
shares of common stock or a combination thereof. For equity repayment, the Convertible Note is convertible into shares of common stock
at price per share equal to the lower of (i) $18.80 (ii) 90% of the three lowest daily volume-weighted average price (“VWAP”)
of the 15 trading days prior to the payment date or (iii) 90% of the VWAP of the trading day prior to payment date. The Convertible Note
is repayable over 26 months and bears interest at the rate of 5% per annum. The Warrant is exercisable for four years from the date of
closing and is exercisable at $0.48 per share, as adjusted. In the event the Investor exercises the Warrant in full, such exercise would
result in additional gross proceeds to the Company of approximately $0.1 million.

On
May 10, 2023, the Company entered into an amendment agreement to the SPA (the “Amendment Agreement”). Under the Amendment
Agreement, the Company and the Investor amended the transaction documents as follows: (i) amended and restated Section 2 of the Warrant
so as to remove a provision that would have potentially required an adjustment to the number of warrant shares exercisable under the
Warrant, (ii) stipulated that the Company would obtain majority shareholder approval to issue up to an additional $10 million Subsequent
Notes and Subsequent Warrants equal to 42.5% of the outstanding principal value of the Subsequent Notes, which Subsequent Note and Subsequent
Warrant would be sold to the Investor on substantially the same terms as the existing Convertible Note and Warrant (each as