Company: SHPH
Filing Date: 2025-02-28
Form Type: 8-K
Source: 0001493152-25-008742
Chunk: 1

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-28
Form: 8-K
Item: Item 1.01
Chunk 1
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 (10th) business day preceding the Maturity Date.

The
Revolving Loan Agreement contains customary events of default. If an event of default occurs, the Lender may accelerate the indebtedness
under the Revolving Loan Agreement, and an amount equal to 120% of the outstanding principal amount and accrued and unpaid interest plus
other amounts, costs, expenses and/or liquidated damages due under or in respect of the Loan Documents for the Financing, if any.

As
a condition of closing, the Revolving Loan Agreement provides that not less than four of the current members of the Company’s Board
of Directors resign and that three nominees designated by the Lender (“ Lender Board Member Nominees”) be appointed to the
Board of Directors by the remaining members of the Board of Directors. As a result, on February 28, 2025 (i) each of Milton Brown, Bette
Jacobs, Chris Senanayake and Joshua Schafer resigned as directors of the Company, and (ii) the Company’s remaining Board of Directors
appointed George Scorsis, Joseph Tung and Oleh Nabyt as directors of the Company.

The
Revolving Loan Agreement also provides that from the date of the Revolving Loan Agreement until the earlier to occur of (i) the Maturity
Date and (ii) the repayment in full of any Revolving Loans in the Payment Amount, the Company will use its reasonable best efforts to
consummate an underwritten public offering of not more than $6,000,000 by the Company of its common stock and/or any convertible security
or warrant, option or other right to subscribe for or purchase any additional shares of the Company’s common stock (“ Qualified
Public Equity Offering”) as soon as practicable, and the Lender shall cooperate with the Company in connection therewith.

The
Revolving Loan Agreement and the Revolving Note contain negative covenants on the part of the Company and customary representations,
warranties, conditions and indemnification obligations of the parties. Among other things, the Company shall not directly or indirectly,
repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its common stock or common
stock equivalents other than (i) as required under the Loan Documents, (ii) repurchases of common stock or common stock equivalents of
departing officers and directors of the Company, provided that such repurchases shall not exceed an aggregate of $25,000 for