Company: EQS
Filing Date: 2025-05-12
Form Type: DEF 14A
Source: 0001712543-25-000028
Chunk: 45

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-05-12
Form: DEF 14A
Chunk 45
---
 Issuance of Shares Below NAV

The following table explains and provides hypothetical
examples on the impact of a public or private offering of the Company’s common stock at a price less than NAV where existing stockholders
do not purchase any shares in the offering. As shown in the table, these stockholders will experience an immediate decrease in the NAV
of the shares they hold and their NAV per share. These stockholders will also experience a disproportionately greater decrease in their
participation in the Company’s earnings and assets and their voting power than the increase the Company will experience in its assets,
potential earning power and voting interests due to the offering. These stockholders may also experience a decline in the market price
of their shares, which often reflects, to some degree, announced or potential increases and decreases in NAV. This decrease could be more
pronounced as the size of the offering and level of discounts increase. There is no maximum level of discount from NAV at which the Company
may sell shares pursuant to this authority.

The table illustrates the level of NAV dilution that
would be experienced by a nonparticipating stockholder in four different hypothetical offerings of different sizes and levels of discount
from NAV. It is not possible to predict the level of market price decline that may occur. These examples are provided for illustrative
purposes only.

The example assumes that the issuer has 13.6 million
shares outstanding and net assets of $29.5 million, which means that the NAV per share is $2.17. The chart illustrates the dilutive effect
on Stockholder A of (a) an offering of 1.36 million shares of common stock (10% of the outstanding shares) at $1.95 per share after offering
expenses and commissions (a 10% discount from NAV per share), (b) an offering of 2.72 million shares of common stock (20% of the outstanding
shares) at $1.74 per share after offering expenses and commissions (a 20% discount from NAV per share), (c) an offering of 4.08 million
shares of common stock (30% of the outstanding shares) at $1.52 per share after offering expenses and commissions (a 30% discount from
NAV per share), and (d) an offering of 5.43 million shares of common stock (40% of the outstanding shares) at $1.28 per share after offering
expenses and commissions (a 40% discount from NAV per share).