Company: EQS
Filing Date: 2025-04-23
Form Type: PRE 14A
Source: 0001712543-25-000025
Chunk: 39

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-23
Form: PRE 14A
Chunk 39
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 for the market as a whole, and financial services firms in particular. As a result of the disruption
and volatility in the credit markets during this time, there has been a reduction in capital available to certain specialty finance companies
and other capital providers, causing a reduction in competition. These conditions also coincided with lower stock prices for BDCs, with
many BDCs trading below NAV. The Company believes that favorable investment opportunities to invest at attractive risk-adjusted returns,
including opportunities to make acquisitions of other companies or investment portfolios at attractive values, may be created during these
periods of disruption and volatility.

In previous years, there have been periods of market
volatility, some lasting longer and with a greater degree of magnitude than others, including recent market conditions driven by the impact
of COVID-19, as well as widespread interruption to the functioning of the U.S. and global economies, volatility driven by instability
in the banking sector and, more recently, volatility resulting from the imposition of tariffs and resulting retaliatory trade practices.
In addition to the recent environment, the Company has seen periods during the last few years where BDCs, including the Company, have
traded significantly below NAV due to such stock market volatility. If adverse market conditions increase in severity and duration or
recur, the Company and other companies in the financial services sector may not have access to sufficient debt capital in order to take
advantage of attractive investment opportunities that are created during these periods. In addition, the debt capital that will be available,
if any, may be at a higher cost and on less favorable terms and conditions in the future. Stockholder approval of the proposal to sell
shares of the Company’s common stock below NAV, subject to the conditions set forth in this proposal, would provide the Company
with the flexibility to raise equity capital to invest in such attractive investment opportunities, which typically need to be made expeditiously.

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Greater Investment Opportunities Due to Larger Capital Resources. The additional capital raised through an offering of the Company’s common stock or instruments convertible
into common stock may help the Company generate additional investment opportunities. With more capital to make investments, the Company
could be a more meaningful capital provider and such additional capital would allow it to compete more effectively for high-quality investment
opportunities. Such investment opportunities may be funded with proceeds of an offering of shares of the Company’s common stock
or convertible securities.

Higher Market Capitalization and Liquidity May Make the Company’s Common Stock More Attractive to Investors.