Company: EQS
Filing Date: 2025-04-23
Form Type: PRE 14A
Source: 0001712543-25-000025
Chunk: 37

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-23
Form: PRE 14A
Chunk 37
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 debt facility covenants, including the 2:1 debt-to-equity ratio that is imposed through the 150%
asset coverage requirement applicable to BDCs under the 1940 Act. It could also minimize the likelihood that the Company would be required
to sell assets that the Company would not otherwise sell in order to comply with regulatory requirements and debt facility covenants,
which sales could occur at times and at prices that are disadvantageous to the Company.

The final terms of any such sale of common stock below
NAV will be determined by the Board at the time of issuance and the shares of common stock will not include preemptive rights. Other than
the foregoing, it is not possible to describe the future transaction or transactions in which such shares of common stock would be issued.
Instead, any transaction in which the Company issues such shares of common stock, including the nature and amount of consideration that
would be received by the Company at the time of issuance and the use of any such consideration, will be reviewed and approved by the Board
at the time of issuance. There will be no limit on the percentage below net asset value per share at which shares may be sold by the Company
or number of offerings that the Company may conduct under this proposal for the one-year period that authorization is granted. Except
for such authorizations as otherwise may be required with respect to a particular issuance under applicable law, NYSE rules or the Company’s
certificate of incorporation, if this proposal is approved, no further authorization from the stockholders will be solicited or required
prior to a sale or other issuance of shares of common stock below NAV in accordance with the terms of this proposal. If approved, the
authorization would be effective for securities issued during a twelve-month period expiring on the anniversary of the date of the Annual
Meeting.

To date, the Company has not issued shares below NAV
under prior authorization granted from stockholders, but it may do so in the future pursuant to the authority granted in this proxy in
connection with the conversion of the Investment Note and the exercise of the Warrants, as well as in connection with one or more future
offerings of the Company’s common stock.

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Conditions to Sales Below NAV

The Company’s ability to issue shares of its
common stock at a price below NAV is governed by the 1940 Act. If stockholders approve this proposal, the Company will only issue shares
of its common stock at a price below NAV pursuant to this stockholder proposal if the following