Company: SHPH
Filing Date: 2025-05-06
Form Type: DEF 14A
Source: 0001641172-25-008884
Chunk: 8

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-05-06
Form: DEF 14A
Chunk 8
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 Agreement and the transactions contemplated thereby would exceed an amount of shares of Common Stock representing 19.99% of the shares of Common Stock issued and outstanding immediately prior to the execution of the Purchase Agreement (the number of shares which may be issued without violating the applicable Nasdaq rules, the “Exchange Cap”), unless the Company’s stockholders have approved the issuance of Common Stock in excess of the Exchange Cap in accordance with the applicable Nasdaq rules. The Company anticipates that the issuance of all shares of Common Stock or other Company securities in connection with the ELOC would require stockholder approval.

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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 an extraordinary corporate transaction opposed by the Company.

What is the Effect on Current Stockholders if the Proposal No. 8 is NOT approved?

If our stockholders do not approve this Proposal No. 8, we would be limited in the amount of money we can draw down on the proposed ELOC as we would be subject to a 19.99% Exchange Cap, which would thus limit the amount of funds