Company: JUNS
Filing Date: 2025-11-06
Form Type: DEF 14A
Source: 0001493152-25-020988
Chunk: 85

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-06
Form: DEF 14A
Chunk 85
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 will prevent us from selling, at less than the Minimum Price, shares of Common Stock to Yorkville in excess of the Exchange Cap. However, it would be possible to sell shares to Yorkville in excess of the Exchange Cap if the sale of shares covered by any Advance is equal to or greater than the Minimum Price for such Advance.

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Dilution and Potential Adverse Impact of Approval of this Proposal No. 5

The issuances of shares of Common Stock under the SEPA and upon conversion of the Convertible Notes, including any shares that may be issued in excess of the Exchange Cap, will result in an increase in the number of shares of Common Stock outstanding and our stockholders will incur substantial dilution of their percentage ownership as a result. If and to the extent such shares are issued, following such issuances, our current stockholders may own a smaller proportionate interest in the Company and, therefore, have less ability to influence corporate decisions requiring stockholder approval. The First Convertible Note in the amount of $4 million is convertible at a fixed conversion price of $1.50 per share (as will be the Second Convertible Note that we will issue to Yorkville upon the funding of the second tranche of the pre-paid advance in the amount of $2 million, less the OID of 7%) which, if the full principal amount outstanding under such Convertible Note (without adding any accrued interest or other amounts payable thereunder) were to be converted into shares of Common Stock at such fixed conversion price, it would result in the issuance to Yorkville of approximately 2,666,667 shares of Common Stock, or 8.0% of the total number of shares of Common Stock issued and outstanding at the time of execution of the SEPA. Moreover, the $1.50 conversion price is subject to adjustment as provided in the Convertible Notes, including (i) standard proportionate antidilution adjustment in the event of any stock split, stock combination, stock dividend or other similar transaction involving the Common Stock and (ii) certain “price protection” antidilution adjustment in the event of certain “dilutive issuances” of Common Stock by the Company at prices deemed to be below then-applicable fixed price (with the exception of certain “excluded issuances” set forth in the Convertible Notes), which would reduce the fixed price to a price equal to the lowest price per share at which the Common Stock is deemed to be issued by the Company in the dilutive issuance,