Company: EQS
Filing Date: 2025-04-23
Form Type: PRE 14A
Source: 0001712543-25-000025
Chunk: 38

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-23
Form: PRE 14A
Chunk 38
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 conditions are met:

| · | a “required majority” of the Company’s                                                                               
 directors have determined that any such sale would be in the best interests of the Company and its stockholders; and |

| · | a “required majority” of the Company’s                                                                                                    
 directors have determined in good faith, and as of a time immediately prior to the first solicitation by or on behalf of the Company of   
 commitments to purchase such common stock or immediately prior to the issuance of such common stock, that the price at which such shares  
 of common stock are to be sold is not less than a price which closely approximates the market value of those shares of common stock, less 
 any distributing commission or discount.                                                                                                  |

Under the 1940 Act, a “required majority”
of directors means both a majority of the Company’s directors who have no financial interest in the transaction and a majority of
the Company’s independent directors. For these purposes, directors will not be deemed to have a financial interest solely by reason
of their ownership of the Company’s common stock.

Board Approval

The Board, including a majority of the directors who
have no financial interest in this proposal and a majority of the independent directors, has approved this proposal as in the best interests
of the Company and its stockholders and recommends it to the stockholders for their approval. Upon obtaining the requisite stockholder
approval, the Company will comply with the conditions described above in connection with any offering undertaken pursuant to this proposal.
See below for a discussion of the risks of dilution.

Reasons to Offer Common Stock Below NAV

The Board has concluded that the authorization for
the Company to sell its common stock below NAV in certain instances is in the Company’s best interests and in the best interests
of its stockholders. In reaching this conclusion, the Board considered the following potential benefits to the Company’s stockholders:

Market Conditions Have Created, and May in the Future Create, Attractive Investment and Acquisition Opportunities. From time to time, capital markets may experience periods of disruption
and instability. For example, in recent years, global capital markets have exhibited instability as evidenced by periodic disruptions
in liquidity in the debt capital markets, significant write-offs in the financial services sector, and the re-pricing of credit risk in
the broadly syndicated credit market. Despite actions of the U.S. federal government and foreign governments, these events contributed
to worsening general economic conditions that materially and adversely impacted the broader financial and credit markets and reduced the
availability of debt and equity capital