Company: EQS
Filing Date: 2025-05-12
Form Type: DEF 14A
Source: 0001712543-25-000028
Chunk: 49

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-05-12
Form: DEF 14A
Chunk 49
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 in order to grow and diversify its investment portfolio.
Such financing may take the form of sales of common stock or instruments convertible into common stock. Although the amount of any such
financing has not been determined, the issuance of such securities, separate from the Convertible Securities, will likely exceed the 19.99%
threshold, either individually or collectively.

Accordingly, the Board has therefore approved, and
recommends that the Company’s stockholders adopt, a proposal to approve, for purposes of the rules of NYSE, the potential issuance
of more than 19.99% of the Company’s outstanding shares of common stock in connection with the following:

| · | Conversion of the Investment Note; |

| · | Exercise of the Warrants; and |

| · | A public or private sale or issuance of equity securities                                                                   
 of the Company in one or more future offerings in exchange for such consideration as the Board deems reasonably sufficient. |

For purposes of this proposal, such authorization
is hereinafter referred to as the “Stock Issuance Proposal”.

Reason for Request for Stockholder Approval

Our Common Stock is listed on NYSE and, as a result,
the Company is subject to the rules and regulations of NYSE. Section 312.03 of the NYSE Listing Manual requires an issuer to obtain stockholder
approval prior to the issuance of common stock in any transaction or series of related transactions, if, among other things: (i) the common
stock has, or will have upon issuance, voting power equal to or in excess of 19.99% of the voting power outstanding before the issuance
of such stock; or (ii) the number of shares of common stock to be issued is, or will be upon issuance, equal to or in excess of 19.99%
of the number of shares of common stock outstanding before the issuance of common stock.

The approval of the Company’s stockholders is
required because, in the event that the holders of the Convertible Securities elect to convert these instruments into common stock, the
Company will be required to issue more than 19.99% of its currently outstanding common stock to effect such conversion.

Approval of the Company’s stockholders is also
required because, in addition to the Convertible Securities, the Company may seek to issue shares of common stock or securities convertible
into common stock in one or more future offerings (“Future Offerings”). It is likely that the number of shares
of common stock issued in connection with any such Future