Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 69

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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Merger and, after giving effect to such Merger, continuing as a wholly-owned subsidiary of the Company and (ii) the Company’s
name was changed from Channel Therapeutics Corporation to Pelthos Therapeutics Inc. 

At
the effective time of the Merger, the Company issued an aggregate of 31,278 shares of the Company’s Series A Preferred Stock
to Ligand as consideration for the LNHC shares.

The
shares of Series A Preferred Stock issued to Ligand in the Merger were not registered under the Securities Act and were issued
and sold in reliance on the exemption from registration requirements thereof provided by Section 4(a)(2) of the Securities Act
as a transaction by an issuer not involving a public offering.

The
shares of the Company’s Common Stock listed on the NYSE American LLC, previously trading through the close of business on
July 1, 2025 under the ticker symbol “CHRO,” commenced trading on the NYSE American under the ticker symbol “PTHS,”
on July 2, 2025. The Company’s Common Stock is represented by a new CUSIP number, 171126 204.

Securities
Purchase Agreement

Concurrently
with the execution of the merger agreement, the Company entered into a securities purchase agreement (the “Securities Purchase
Agreement”) with LNHC and certain investors, which included Ligand (collectively, the “PIPE Investors”), pursuant
to which, among other things, on the Merger Closing Date and immediately prior to the consummation of the Merger, the PIPE Investors
purchased (either for cash or in exchange for the conversion of principal and interest payable under an outstanding convertible
note issued by the Company), and the Company issued and sold to the PIPE Investors, an aggregate of 50,100 shares of the Company’s
Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”) at a price per
share equal to $1,000 (such transaction, the “PIPE Financing”). The gross proceeds from the PIPE Financing were approximately
$50.1 million, consisting of approximately $50.0 million in consideration and the conversion of approximately $0.1 million of
principal and interest payable under an outstanding convertible note with a related party issued by the Company, before paying
estimated expenses and before the settlement of certain outstanding bridge notes with the PIPE Investors, described below.

On
July 1, 2025, the