Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 750

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 3
Chunk 750
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 purchase warrants to purchase up to 2,950,820 shares of common stock (the “Common Warrants”). Each share of common
stock, or a pre-funded warrant in lieu thereof, was sold together with an accompanying warrant to purchase one share of common stock.

The
public offering price for each share of Common Stock and one accompanying Common Warrant was $1.525. The public offering price of each
Pre-Funded Warrant and one accompanying Common Warrant was $1.524, which equals the price at which one share of Common Stock and accompanying
Common Warrant was sold to the public in this offering, minus $0.001. The exercise price of each Pre-Funded Warrant is $0.001 per share, until exercised.
Each Common Warrant offered in the offering is exercisable for one share of Common Stock and has an initial exercise price equal to $1.40, over a five-year term.
The Company received aggregate gross proceeds from the offering of approximately $4.5 million, before deducting placement agents’
fees and other offering expenses, of $0.8 million.

    F-21

Both
the Pre-Funded Warrants and the Common Warrants contain standard adjustments to the exercise price, including for stock splits, stock
dividends and pro rata distributions and contain customary terms regarding the treatment of such Pre-Funded Warrants or Common Warrants
in the event of a fundamental transaction, which include but are not limited to a merger or consolidation involving the Company, a sale
of all or substantially all of the assets of the Company or a business combination resulting in any person acquiring more than 50% of
the outstanding shares of Common Stock of the Company. Additionally, the Pre-Funded Warrants and Common Warrants include restrictions
on exercise in the event the Purchaser’s beneficial ownership of the Company’s common stock would exceed 4.99% of the number
of shares of Common Stock outstanding immediately after giving effect to the exercise. 

The
Company concluded that the Pre-Funded Warrants met the requirements to be classified in stockholders’ equity. The Common
Warrants will be classified as liabilities as they do not meet the requirements to be considered indexed to the Company’s own
stock, due to potential variability in the settlement amount upon a fundamental transaction. The fair market value of the Common
Warrants and the Pre-Funded Warrants at their issuance has been calculated using a Monte Carlo simulation model. The key
inputs into the model were