Company: SHPH
Filing Date: 2025-02-13
Form Type: S-1
Source: 0001493152-25-006202
Chunk: 184

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-13
Form: S-1
Chunk 184
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, after which time the Springing DACA was no longer in effect. Further, pursuant to amendments to the SPA entered into in May and June of 2023, the Company and the Investor agreed that all of the Investment Amount would be released to the Company and the relevant provision of the SPA which required the Springing DACA would no longer be deemed applicable. In addition, the Company granted the Investor the option to purchase up to an additional $ 10.0million in convertible notes and warrants on substantially the same terms as the Alto Convertible Note and Warrant, excluding the Springing DACA requirement, with such option to be effective through December 31, 2025. The agreement offers the investor an opportunity to participate in future capital raises at substantially similar terms as the January 11, 2023 agreement. The Company expects that such subsequent convertible notes and warrants would be issued on substantially similar terms as the January 11, 2023 initial agreement, as amended, thus providing the Company the opportunity to negotiate certain aspects of the agreement.

| F-14 |

Boustead Securities, LLC (“Boustead”) served as a placement agent for the Alto Convertible Note and Warrant offering and received $ 345,000cash compensation and a warrant to purchase 8,909shares of common stock, exercisable at $ 18.80per share. The Boustead warrant was determined to be an equity instrument valued on a non-recurring basis. The Company used the Black Scholes valuation model using a term of five years, volatility of 110%, a risk-free rate of 3.53% for a value of $ 99,543.

The Company allocated the finance costs related to the Boustead placement agent fee of $ 345,000, based on the relative fair market values of the Convertible Note and warrants issued. The allocation of the financing costs applied $ 232,027to the debt component as a debt discount that is being amortized to interest expense over the term of the Convertible Note, $ 104,245to the warrant derivative liability component, expensed as a finance fee, and $ 8,727to the equity warrant as a reduction in additional paid in capital.

The Company allocated to the debt component of the note an original discount of $ 300,000, legal fees of $ 65,000, $ 215,000for additional interest fees on day one added to note principal, $ 1,442,000for the accelerated conversion feature, and $ 1,