Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 256

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1A
Chunk 256
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 to purchase 127,260 shares of common
stock of the Company, in exchange for gross proceeds of $4.0 million Investment Amount. The Convertible Note amortizes on a monthly basis
and the Company can make such monthly amortization payments in cash or, subject to certain equity conditions, in registered shares of
common stock or a combination thereof. For equity repayment, the Convertible Note is convertible into shares of common stock at price
per share equal to the lower of (i) $18.80 (ii) 90% of the three lowest daily VWAPs of the 15 trading days prior to the payment date
or (iii) 90% of the VWAP of the trading day prior to payment date. The Convertible Note is repayable over 26 months and bears interest
at the rate of 5% per annum. The Warrant is exercisable for four years from the date of closing and is exercisable at $0.48 per share.
In the event the Investor exercises the Warrant in full, such exercise would result in additional gross proceeds to the Company of approximately
$0.1 million.

On
May 10, 2023, we entered into an amendment agreement to the SPA (the “Amendment Agreement”). Under the Amendment Agreement,
the Company and the Investor amended the transaction documents as follows: (i) amended and restated Section 2 of the Warrant so as to
remove a provision that would have potentially required an adjustment to the number of warrant shares exercisable under the Warrant,
(ii) stipulated that the Company would obtain majority shareholder approval to issue up to an additional $10 million Subsequent Notes
and Subsequent Warrants equal to 42.5% of the outstanding principal value of the Subsequent Notes, which Subsequent Note and Subsequent
Warrant would be sold to the Investor on substantially the same terms as the existing Convertible Note and Warrant (each as amended by
the Amendment Agreement) and upon conversion and/or exercise would cause the potential issuance of in excess of 19.9% of the Company’s
issued and outstanding stock, (iii) that, upon obtaining majority stockholder approval, the Company would file a Schedule 14C related
to such potential issuance of the shares of common stock related to the potential sale of the Subsequent Notes and Subsequent Warrants
to the Investor within 30 calendar days of entry into the Amendment Agreement, and (iv) stipulated that the Investor would release $1