Company: AEMD
Filing Date: 2025-04-08
Form Type: PRE 14A
Source: 0001683168-25-002332
Chunk: 20

Company: AETHLON MEDICAL INC
Filing Date: 2025-04-08
Form: PRE 14A
Chunk 20
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 a potentially effective means for us to maintain compliance with the $1.00 minimum bid requirement and to avoid,
or at least mitigate, the likely adverse consequences of our common stock being delisted from The Nasdaq Capital Market by producing the
immediate effect of increasing the bid price of our common stock.

The Board of Directors believes that maintaining the
current number of authorized shares of our common stock, irrespective of the Reverse Stock Split, is necessary to provide us with the
flexibility to act in the future with respect to raising additional financing, potential strategic collaborations and other corporate
purposes without the delay and expense associated with obtaining special stockholder approval each time an opportunity requiring the issuance
of shares of common stock may arise. Such a delay might deny us the flexibility that our Board of Directors views as important and in
the interests of the Company and its stockholders.

To potentially improve the marketability and liquidity of our common stock. Our Board of Directors believes that the increased market price of our common stock expected as a result
of implementing a Reverse Stock Split could improve the marketability and liquidity of our common stock and encourage interest and trading
in our common stock.

| · | Stock Price Requirements: We understand that many brokerage houses, institutional investors and funds 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 or by restricting or limiting the ability to purchase such stocks on margin. Additionally, a Reverse Stock Split could help increase analyst and broker interest in our common stock, as their internal policies might discourage them from following or recommending companies with low stock prices. |
| · | Stock Price Volatility: 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:

| ·