Company: SHPH
Filing Date: 2025-04-22
Form Type: PRER14A
Source: 0001641172-25-005648
Chunk: 8

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-04-22
Form: PRER14A
Chunk 8
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 and the transactions contemplated thereby would exceed an amount of shares of Common Stock representing 19.99% of the shares of Common Stock issued and outstanding immediately prior to the execution of the Purchase Agreement (the number of shares which may be issued without violating the applicable Nasdaq rules, the “Exchange Cap”), unless the Company’s stockholders have approved the issuance of Common Stock in excess of the Exchange Cap in accordance with the applicable Nasdaq rules. The Company anticipates that the issuance of all shares of Common Stock or other Company securities in connection with the ELOC would require stockholder approval.

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Purpose of the ELOC

As previously disclosed in the Current Report on Form 8-K filed by the Company with the SEC on August 23, 2024, the Company received a letter from the Nasdaq Listing Qualifications staff of Nasdaq (the “Staff”) on August 21, 2024 stating that it was not in compliance with Nasdaq Listing Rule 5550(b)(1), which requires companies listed on the Nasdaq Capital Market to maintain a minimum of $2,500,000 in stockholders’ equity for continued listing (the “Stockholders’ Equity Requirement”). The Company reported stockholders’ equity of $1,703,798 in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and, as a result, it was not in compliance with the Stockholders’ Equity Requirement. As previously disclosed in the Current Report on Form 8-K filed by the Company with the SEC on October 18, 2024, the Staff notified the Company on October 16, 2024 that it would delist the Common Stock from the Nasdaq Capital Market, and in response, the Company timely requested an appeal of such notice to a Nasdaq hearing panel (the “Panel”). The Nasdaq hearing date has been set for December 12, 2024. While the appeal process is pending, the suspension of trading of the Common Stock on the Nasdaq Capital Market will be stayed until the hearing process concludes and the Panel issues a decision. The Company is diligently working to regain compliance with the Stockholders’ Equity Requirement, and the Company intends to effect the contemplated Committed Equity Financing in order to assist it with regaining compliance with such requirement. However, no assurance at this time can be given that the Company and the Investor will enter into a definitive agreement. We will use the proceeds, if any, from the proposed Committed Equity Financing to implement our business