Company: SHPH
Filing Date: 2025-03-19
Form Type: PRE 14A
Source: 0001493152-25-010886
Chunk: 26

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-03-19
Form: PRE 14A
Chunk 26
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 stockholders.

Because the Reverse Stock Split will decrease the number of outstanding shares of our common stock by a ratio in the range of 1-for-3 to 1-for-10 but would not effect a decrease to the number of shares of common stock that the Company will be authorized to issue, the proposed Reverse Stock Split would result in a relative increase in the number of authorized and unissued shares of our common stock. For more information on the relative increase in the number of authorized shares of our common stock, see “ — Principal Effects of the Reverse Stock Split — Relative Increase in Number of Authorized Shares of common stock for Issuance” below.

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Purpose and Background of Reverse Stock Split

The Board of Directors’ primary objective in asking for authority to effect the Reverse Stock Split is to increase the per-share trading price of our common stock. As background for the Reverse Stock Split, we received a notice on December 31, 2024 from the Nasdaq Listing Qualifications Department (the “Staff”) notifying of our noncompliance with Nasdaq Listing Rule 5550(a)(2) by failing to maintain a minimum bid price for our common stock on the Nasdaq of at least $1.00 per share for 30 consecutive business days (the “Minimum Bid Price Requirement”). Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), we were given an initial period of 180 calendar days, or until June 30, 2025 (the “the Grace Period”), to regain compliance with the Minimum Bid Price Requirement. Because the Company had also fallen out of compliance with the Minimum Bid Price Requirement and had been unable to organically regain compliance during the two 180-day grace periods, the Company completed a 1-for-8 reverse stock split on August 13, 2024 in order to maintain its Nasdaq listing. Due to a recent change in the Nasdaq Listing Rules, the Company is only allowed a single 180 day period to regain compliance with the Minimum Bid Price Requirement. As a result, should our stock fail to trade above $1.00 for at least 10 consecutive trading days prior to June 1, 2025, we will have no choice but to effectuate a Reverse Stock Split in order to regain compliance with the Minimum Bid Price Requirement prior to June 30, 2025 and maintain our listing on the Nasdaq Capital Markets.

The Board of Directors believes that the failure of stockholders to approve the Reverse Stock Split could prevent us from maintaining compliance