Company: EQS
Filing Date: 2025-05-12
Form Type: DEF 14A
Source: 0001712543-25-000028
Chunk: 48

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-05-12
Form: DEF 14A
Chunk 48
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-CURRENT NAV

PURSUANT TO A CONVERSION OF THE INVESTMENT NOTE AND EXERCISE OF THE WARRANTS

AND IN ONE OR MORE OFFERINGS, IN EACH CASE SUBJECT TO THE APPROVAL OF THE BOARD AND SUBJECT TO THE CONDITIONS AS SET FORTH HEREIN</div>

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<div align='center'>PROPOSAL 5—AUTHORIZATION OF THE COMPANY

TO SELL OR OTHERWISE ISSUE SHARES OF ITS COMMON STOCK

IN EXCESS OF 19.99% OF ITS OUTSTANDING SHARES IN CONNECTION WITH THE CONVERSION

OF THE INVESTMENT NOTE AND THE EXERCISE OF THE WARRANTS

AND IN ONE OR MORE FUTURE OFFERINGS</div>

Overview

Rule 312.03(c) of the NYSE Listing Manual requires
shareholder approval for the issuance of common stock or securities convertible into common stock that has, or will have upon issuance,
voting power in excess of 19.99% of an issuer’s outstanding voting securities.

As described under Proposal 4 above, the Company
has issued the Investment Note and Warrants, each of which are convertible or exercisable into shares of the Company’s common stock
at a price of $1.50 per share. Excluding the conversion of accrued interest on the Investment Note, the Investment Note and Warrants (collectively,
the “Convertible Securities”) are collectively convertible or exercisable into an aggregate of 3,333,333 shares
of Equus common stock, or approximately 24.5% of the Company’s shares currently issued and outstanding.

In addition, the Convertible Securities contain an
adjustment mechanism that will decrease the relevant conversion or exercise price if the Company issues shares of its common stock at
a price less than $1.50 per share (there is no corresponding upward adjustment mechanism for issuances above $1.50). Consequently, the
number of shares of common stock underlying the Convertible Securities could be higher than 24.5% of the Company’s outstanding shares.
Moreover, the Investment Note bears interest at the rate of 10.0% per annum, which amount is also convertible at $1.50 per share and subject
to the adjustment mechanism. With or without the adjustment mechanism, the conversion of the Convertible Securities would exceed the 19.99%
limit set forth under Section 312.03(c) of the NYSE Listing Manual.

The issuance of the Convertible Securities
is part of a broader financing strategy of the Company to secure investment capital