Company: EQS
Filing Date: 2025-05-12
Form Type: DEF 14A
Source: 0001712543-25-000028
Chunk: 55

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-05-12
Form: DEF 14A
Chunk 55
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by the reduced number of shares outstanding after the Reverse Stock Split, which would be exacerbated if the stock price does not increase
following the split. In addition, a Reverse Stock Split would increase the number of stockholders owning “odd lots” of fewer
than 100 shares, trading in which generally results in higher transaction costs. Accordingly, a Reverse Stock Split may not achieve the
desired results of increasing marketability and liquidity as described above.

The implementation of a Reverse Stock Split
would result in an effective increase in the authorized number of shares of common stock available for issuance, which could, under certain
circumstances, have anti-takeover implications. The additional shares of common stock available for issuance could be used by the Company
to oppose a hostile takeover attempt or to delay or prevent changes in control or in our management. Although the Reverse Stock Split
has been prompted by business and financial considerations, and not by the threat of any hostile takeover attempt (nor is the Board currently
aware of any such attempts directed at us), stockholders should be aware that approval of the Reverse Stock Split could facilitate future
efforts by us to deter or prevent changes in control, including transactions in which stockholders might otherwise receive a premium for
their shares over then-current market prices.

| 45 |

Stockholders should also keep in mind that
the implementation of a Reverse Stock Split does not have an effect on the actual or intrinsic value of our business or a stockholder’s
proportional ownership interest (subject to the treatment of fractional shares). However, should the overall value of our common stock
decline after a Reverse Stock Split, then the actual or intrinsic value of shares held by stockholders will also proportionately decrease
as a result of the overall decline in value.

Effects of a Reverse Stock Split

As of the Effective Date:

| · | each two (2) to five (5) shares of common stock outstanding                                                                           
 (depending on the Reverse Stock Split ratio selected by the Board) will be combined, automatically and without any action on the part 
 of the Company or its stockholders, into one new share of common stock;                                                               |

| · | no fractional shares of common stock will be issued; instead,                                                                      
 stockholders who would otherwise receive a fractional share will receive cash in lieu of the fractional share (as detailed below); |

| · | proportionate adjustments will be made to the number of                                                                                    
 shares issuable upon the exercise or vesting of all then-outstanding stock options, warrants and