Company: EQS
Filing Date: 2025-05-12
Form Type: DEF 14A
Source: 0001712543-25-000028
Chunk: 52

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-05-12
Form: DEF 14A
Chunk 52
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:1 to 5:1, inclusive. However, even if stockholder approval is obtained, the Board may ultimately decide to not authorize the Reverse Stock Split and may abandon the endeavor entirely.

The primary purpose of the Reverse Stock
Split, if effected, is to raise the per share trading price of our common stock by reducing the number of outstanding shares in order
to maintain our listing on the NYSE. On April 10 through April 15, 2025, the closing trading price of our shares was below $1.00. Under
Section 802.01C of the NYSE Listed Company Manual, a company is required to maintain an average closing price of at least $1.00 over thirty
consecutive trading days (the “Average Price Rule”). Companies whose shares trade below this threshold for an
average of thirty consecutive days are subject to suspension and possible delisting if they fail to comply with the Average Price Rule
within six months of receiving written notice from the NYSE. As of the date of this Proxy Statement, the Company has not received any
notice from the NYSE of its failure to comply with Section 802.01C. Nevertheless, as a cautionary matter, the Company is seeking to provide
the Board the discretion to effect the Reverse Stock Split so as to avoid possible future noncompliance with the Average Price Rule.

Amendment to Charter Required

Under Delaware law, a reverse split of a
corporation’s outstanding shares requires an amendment to its Certificate of Incorporation, for which stockholder approval is required.
The effectiveness of such an amendment or the abandonment thereof, notwithstanding stockholder approval, will be determined by the Board,
at its sole option, following the annual meeting of stockholders. The text of the proposed form of Certificate of Amendment to our Certificate
of Incorporation (the “Certificate of Amendment”) is attached hereto as Appendix A. If approved by stockholders
at the Meeting and implemented by the Board, the Reverse Stock Split will become effective upon the filing of the Certificate of Amendment
with the Secretary of State of the State of Delaware, or such later date as is chosen by the Board and set forth in the Certificate of
Amendment (the “Effective Date”). If the Board chooses to proceed with the Reverse Stock Split, we will publicly
announce the Reverse Stock Split ratio chosen by the Board prior to the Effective Date.

Reasons for a Reverse Stock Split

To Maintain Our Listing on the NYSE.
As discussed above, the primary purpose of the Reverse