Company: SHPH
Filing Date: 2025-02-27
Form Type: 424B3
Source: 0001493152-25-008474
Chunk: 116

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-27
Form: 424B3
Chunk 116
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 placement agents’ fees and other offering expenses, of $0.8 million.

| F-21 |

Both the Pre-Funded Warrants and the Common Warrants contain standard adjustments to the exercise price, including for stock splits, stock dividends and pro rata distributions and contain customary terms regarding the treatment of such Pre-Funded Warrants or Common Warrants in the event of a fundamental transaction, which include but are not limited to a merger or consolidation involving the Company, a sale of all or substantially all of the assets of the Company or a business combination resulting in any person acquiring more than 50% of the outstanding shares of Common Stock of the Company. Additionally, the Pre-Funded Warrants and Common Warrants include restrictions on exercise in the event the Purchaser’s beneficial ownership of the Company’s common stock would exceed 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to the exercise.

The Company concluded that the Pre-Funded Warrants met the requirements to be classified in stockholders’ equity. The Common Warrants will be classified as liabilities as they do not meet the requirements to be considered indexed to the Company’s own stock, due to potential variability in the settlement amount upon a fundamental transaction. The fair market value of the Common Warrants and the Pre-Funded Warrants at their issuance has been calculated using a Monte Carlo simulation model. The key inputs into the model were the same used for the 2024 Convertible Bridge Notes (Note 5 above), except for the risk-free rates (4.15% - 4.47%), respective exercise prices and expected lives.The net proceeds from the Public Offering were allocated first to the Common Warrants at fair value, with the residual amount recorded to the Common Stock and Pre-Funded Warrants based on their relative fair value. The proceeds allocated to the Common Warrants, Common Stock and the Pre-Funded Warrants were $0.2 million, $0.8 million and $3.5 million, respectively. The estimated fair values of the Shares and Pre-Funded Warrants have been recorded in additional paid in capital, while the fair value of the Common Warrants have been recorded as a derivative liability.

The Company also incurred $0.8 million in legal and other fees related to the Public Offering. The legal and other fees were allocated to the Common Stock, Common Warrants, and Pre-Funded Warrants in proportion to the allocation of the proceeds. $0.7 million of legal and other fees are recorded as costs of the