Company: EQS
Filing Date: 2025-04-23
Form Type: PRE 14A
Source: 0001712543-25-000025
Chunk: 53

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-23
Form: PRE 14A
Chunk 53
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 purchasing stocks
below certain prices because brokers’ commissions, as a percentage of the total transaction value, can be higher for low-priced
stocks.

To Decrease the Risk of Market Manipulation of our Common Stock. The Board believes that the potential increase in stock price may reduce the risk of market manipulation of our
common stock, which we believe is enhanced when our stock trades below $1.00 per share. By reducing market manipulation risk, we may also
thereby potentially decrease the volatility of our stock price.

To Provide Us With Flexibility With Respect to Our Authorized Common Stock. As shown in the table on page 42 below, a Reverse Stock Split is expected to increase the number of
authorized, but unissued and unreserved, shares of our common stock. These additional shares would provide flexibility to the Company
for raising capital; repurchasing debt; providing equity incentives to employees, officers, directors, consultants and advisors (including
pursuant to our existing 2016 Equity Incentive Plan); expanding our business through the acquisition of other businesses and for other
purposes. However, at present, we do not have any specific plans, arrangements, understandings or commitments for the additional shares
that would become available.

| 43 |

Accordingly, for these and other reasons, the
Board believes that a Reverse Stock Split is in the best interests of the Company and our stockholders.

Criteria to be Used for Determining Whether to Implement a Reverse Stock Split

Proposal 6 gives the Board discretion to select
a Reverse Stock Split ratio from within a range between and including 2:1 and 5:1 based on the Board’s then-current assessment
of the factors below, and in order to maximize Company and stockholder interests. In determining whether to implement the Reverse Stock
Split, and which ratio to implement, if any, the Board may consider, among other factors:

| · | the historical trading price and trading volume of our common 
 stock;                                                        |

| · | the then-prevailing trading price and trading volume of                                                                
 our common stock and the expected impact of the Reverse Stock Split on the trading market in the short- and long-term; |

| · | the continued listing requirements for our common stock 
 on the NYSE or other applicable exchanges;              |

| · | the number of shares of common stock outstanding; |

| · | which Reverse Stock Split ratio would result in the least 
 administrative cost to us; and                            |

| · | prevailing industry, market and economic conditions