Company: SHPH
Filing Date: 2025-04-22
Form Type: PRER14A
Source: 0001641172-25-005648
Chunk: 9

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-04-22
Form: PRER14A
Chunk 9
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 strategy, to enhance our overall capitalization, and for working capital.

The Board has considered the potential harm to the Company and its stockholders should Nasdaq delist our Common Stock from the Nasdaq Capital Market based on any failure to comply with the Stockholders’ Equity Requirement. Delisting our Common Stock could adversely affect the liquidity of our Common Stock because alternatives, such as the OTC Bulletin Board, OTC Markets and the Pink Sheets, on which our Common Stock may be quoted are generally considered to be less efficient markets. An investor likely would find it less convenient to sell, or to obtain accurate quotations in seeking to buy our Common Stock on an over-the-counter market. Many investors likely would not buy or sell our Common Stock due to difficulty in accessing over-the-counter markets, policies preventing them from trading in securities not listed on a national exchange or other reasons. The Board believes that the proposed Committed Equity Financing will be an effective means to assist the Company with regaining compliance with the Stockholders’ Equity Requirement.

What is the Effect on Current Stockholders if Proposal No. 8 is Approved?

If our stockholders approve this proposal, we will be able to eliminate the Exchange Cap in the proposed Purchase Agreement and therefore have the option to issue the maximum number of shares of Common Stock or other securities of the Company issuable under the Purchase Agreement which would potentially exceed 19.99% of our issued and outstanding shares of common stock as of the date we execute the Purchase Agreement. This will allow the Company flexibility in accessing the ELOC to raise capital as we continue to pursue our clinical trial activities and fund our business.

If stockholders approve Proposal No. 8, the rights or privileges of our existing stockholders will not be affected, except that the economic and voting interests of each of our existing stockholders will be significantly diluted should we choose to require the ELOC investor to purchase those shares pursuant to the Purchase Agreement. Although the number of shares of our common stock that our existing stockholders own will not decrease, the shares of our common stock owned by our existing stockholders may represent a smaller percentage of our total outstanding shares of our common stock after any issuance made under the proposed ELOC Agreement. The issuance of shares of common stock or other securities of the Company in connection with the ELOC could have an anti-takeover effect. Such issuance could dilute the voting power of a person seeking control of the Company, thereby deterring or rendering more difficult a merger, tender offer, proxy contest, election of members to the Board or