Company: AEMD
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001683168-25-002685
Chunk: 20

Company: AETHLON MEDICAL INC
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 20
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 for us to raise
additional capital through the public or private sale of equity securities and for investors to dispose of or obtain accurate quotations
as to the market value of our common stock. Moreover, if our common stock is delisted, it may come within the definition of “penny
stock” under the Exchange Act, which imposes additional sales practice requirements on broker-dealers who sell securities to persons
other than established customers and accredited investors. These requirements may reduce trading activity in the secondary market for
our common stock and may impact the ability or willingness of broker-dealers to sell our securities which could limit the ability of stockholders
to sell their securities in the public market and limit our ability to attract and retain qualified employees or raise additional capital
in the future.

| 10 |

The Board of Directors believes that the proposed
Reverse Stock Split is a potentially effective means for us to maintain compliance with the $1.00 minimum bid requirement and to avoid,
or at least mitigate, the likely adverse consequences of our common stock being delisted from The Nasdaq Capital Market by producing the
immediate effect of increasing the bid price of our common stock.

The Board of Directors believes that maintaining the
current number of authorized shares of our common stock, irrespective of the Reverse Stock Split, is necessary to provide us with the
flexibility to act in the future with respect to raising additional financing, potential strategic collaborations and other corporate
purposes without the delay and expense associated with obtaining special stockholder approval each time an opportunity requiring the issuance
of shares of common stock may arise. Such a delay might deny us the flexibility that our Board of Directors views as important and in
the interests of the Company and its stockholders.

To potentially improve the marketability and liquidity of our common stock. Our Board of Directors believes that the increased market price of our common stock expected as a result
of implementing a Reverse Stock Split could improve the marketability and liquidity of our common stock and encourage interest and trading
in our common stock.

| · | Stock Price Requirements: We understand that many brokerage houses, institutional investors and funds have internal policies and practices that either prohibit them from investing in low-priced stocks or tend to discourage individual brokers from recommending low-priced stocks to their customers or by restricting or limiting the ability to purchase such stocks on margin. Additionally, a Reverse Stock Split could help increase analyst and broker interest in our common stock, as their internal policies might discourage them from following or recommending companies with low stock prices. |
| · | Stock Price Volatility: