Company: EQS
Filing Date: 2025-05-12
Form Type: DEF 14A
Source: 0001712543-25-000028
Chunk: 53

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-05-12
Form: DEF 14A
Chunk 53
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 Stock Split is to raise the per share trading price of the Company’s common
stock in order to maintain its listing on the NYSE. Delisting from the NYSE may adversely affect the Company’s ability to raise
additional financing through the public or private sale of equity securities, may significantly affect the ability of investors to trade
in the Company’s securities, and may negatively affect the value and liquidity of the Company’s common stock. Delisting may
also have other negative impacts, including potential loss of employee confidence, the loss of institutional investors or interest in
business development and investment opportunities.

To Potentially Improve the Marketability and Liquidity of our Common Stock. The Board believes that an increased stock price may also improve the marketability and liquidity
of our common stock. For example, many brokerages, institutional investors and funds have internal policies that either prohibit them
from investing in low-priced stocks or tend to discourage individual brokers from recommending low-priced stocks to their customers by
restricting or limiting the ability to purchase such stocks on margin. Additionally, investors may be dissuaded from 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.

| 44 |

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.

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