Company: EQS
Filing Date: 2025-05-12
Form Type: DEF 14A
Source: 0001712543-25-000028
Chunk: 54

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-05-12
Form: DEF 14A
Chunk 54
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 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. |

Certain Risks and Potential Disadvantages Associated with a Reverse Stock Split

We cannot assure stockholders that the Reverse
Stock Split, if effected, will sufficiently increase our stock price to ensure compliance with the NYSE’s Average Price Rule. The
effect of a Reverse Stock Split on our stock price cannot be predicted with any certainty, and the history of reverse stock splits for
other companies in our industry is varied, particularly since some investors may view a reverse stock split negatively. It is possible
that our stock price after a Reverse Stock Split will not increase in the same proportion as the reduction in the number of shares outstanding,
causing a reduction in the Company’s overall market capitalization. Further, even if we implement a Reverse Stock Split, our stock
price may decline due to various factors, including our future performance and general industry, market and economic conditions. This
percentage decline, as an absolute number and as a percentage of our overall market capitalization, may be greater than would occur in
the absence of a Reverse Stock Split. In addition, if the Board effected the Reverse Stock Split to enable the Company to regain compliance
with the NYSE’s Average Price Rule, we cannot assure stockholders that we will continue to be able to maintain compliance with the
NYSE’s other rules.

The proposed Reverse Stock Split may decrease
the liquidity of our common stock and result in higher transaction costs. The liquidity of our common stock may be negatively impacted