Company: AEMD
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001683168-25-002685
Chunk: 32

Company: AETHLON MEDICAL INC
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 32
---
 Company’s Class A and Class B Warrants issued on May 17, 2024 (the “Existing Warrants”).
Pursuant to the Inducement Agreement, the Holder, upon exercise, received a new unregistered Common Stock Purchase Warrant (“Inducement
Warrants”) pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), to purchase
up to a number of shares equal to 200% of the number of Warrant Shared issued pursuant to the exercise of Existing Warrants pursuant to
the Agreement (the “Inducement Warrant Shares”), which Inducement Warrants shall have an exercise price equal to $0.3736,
subject to adjustment as provided in the Inducement Warrant, will be exercisable any time after six (6) months from the date of issuances
and have a term of exercise of five and one half (5.5) years from the date of issuance and (ii) a reduction of the exercise price of the
Existing Warrants to $0.3736 per share, representing the closing price on March 14, 2025, but only with respect to a cash exercise under
the Existing Warrants (as reduced from the previous respective exercise price as set forth in the Existing Warrants).

The closing took place on March 17, 2025. Gross
proceeds to the Company from the exercise of the Existing Warrants was approximately $2,316,320 million, prior to deducting closing costs
and placement agent fees as further described below. We intend to use the net proceeds from the offering for working capital and general
corporate purposes. As a result of the Holder exercising the Existing Warrants, the Company issued an aggregate of 6,200,000 shares of
its common stock. The shares underlying the Existing Warrants have all been registered on Form S-1 registration statement (Registration
Number 333-278188).

Based on the Inducement
Warrant exercise price of $0.3736, (and not adjusted pursuant to the Reset of Exercise Price provision discussed below), the Holder may
be issued up to a maximum of 12,400,000 shares of common stock under the Inducement Warrants. However, holder is subject to a beneficial
ownership limitation of 4.99% limiting the issuance of such shares. The common shares issuable under the Inducement Warrants are also
subject to