Company: AEMD
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001683168-25-002685
Chunk: 21

Company: AETHLON MEDICAL INC
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 21
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 Because of the trading volatility often associated with low-priced stocks, many brokerage houses and institutional investors have internal policies and practices that either prohibit them from investing in low-priced stocks or tend to discourage individual brokers from recommending low-priced stocks to their customers. Some of those policies and practices may make the processing of trades in low-priced stocks economically unattractive to brokers.                                                                                                                      |
| · | Transaction Costs: Investors may be dissuaded from purchasing stocks below certain prices because brokers’ commissions, as a percentage of the total transaction value, can be higher for low-priced stocks.                                                                                                                                                                                                                                                                                                                                                                                                    |

Criteria to be Used for Determining Whether to Implement Reverse Stock Split

In determining whether to implement the Reverse Stock
Split and which Reverse Stock Split ratio to implement, our Board of Directors may consider, among other things, various factors, such
as:

| · | the historical trading price and trading volume of our common stock;                                                                                                                                                                                                                         |
| · | the then-prevailing trading price and trading volume of our common stock and the expected impact of the Reverse Stock Split on the trading market for our common stock in the short- and long-term;                                                                                          |
| · | our ability to maintain our listing on The Nasdaq Capital Market;                                                                                                                                                                                                                            |
| · | which Reverse Stock Split ratio would result in the least administrative cost to us;                                                                                                                                                                                                         |
| · | prevailing general market and economic conditions; and                                                                                                                                                                                                                                       |
| · | if our stockholders approve this Proposal 1, the additional authorized but unissued shares of common stock that will result from the implementation of a Reverse Stock Split, which will be available to provide flexibility to use our common stock for business and/or financial purposes. |

| 11 |

Certain Risks and Potential Disadvantages Associated with Reverse Stock Split

We cannot assure you that the proposed Reverse Stock Split will increase our stock price and have the desired effect of maintaining compliance with Nasdaq Marketplace Rules. We
expect that the Reverse Stock Split will increase the market price of our common stock so that we may be able to regain and maintain compliance
with the Nasdaq $1.00 minimum bid price requirement. However, the effect of the Reverse Stock Split upon the market price of our common
stock cannot be predicted with any certainty, and the history of similar reverse stock splits for companies in like circumstances is varied,
particularly since some investors may view a reverse stock split negatively. It is possible that the per share price of our common stock
after the Reverse Stock Split will not rise in proportion to the reduction in