Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 47

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 of Series A Preferred
Stock, at a price per share equal to $1,000 (the “Purchase Price”) (such transaction, the “PIPE Financing”
and together with the Merger, the “Transactions”). The PIPE Financing is expected to close immediately prior to the
closing of the Merger. The gross proceeds from the PIPE Financing are expected to be approximately $50.1 million, which amount
will include the cancellation of any outstanding amounts under certain bridges notes provided by certain of the PIPE Investors,
before paying estimated expenses. The closing of the PIPE Financing is conditioned upon the closing of the Merger, entry into
the Royalty Agreements (as defined in the Securities Purchase Agreement), as well as certain other conditions. The Series A Preferred
Stock and the shares of Common Stock issuable upon conversion of the Series A Preferred Stock issued in the PIPE Financing will
be issued pursuant to an exemption from the registration requirements of the Securities Act, and the resale of the shares of Common
Stock issuable upon conversion of the Series A Preferred Stock will be registered pursuant to a resale registration statement
(the “Registration Statement”).

The
Company also agreed to defend, indemnify and hold harmless the PIPE Investors and their respective stockholders, partners, members,
officers, directors, employees, direct or indirect investors, and any of their agents or other representatives against any and
all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (including reasonable attorneys’ fees) arising out of or relating to: (i) any misrepresentation or breach of any
representation or warranty made by the Company or its subsidiaries, (ii) any breach of any covenant, agreement or obligation owed
by the Company or its subsidiaries, or (iii) any cause of action, suit, proceeding or claim brought by a third party, including
any derivative action, that arises out of or relates to (A) the execution, delivery, performance or enforcement of the Purchase
Agreement and related transaction documents, (B) any transaction financed or to be financed in whole or in part with the proceeds
of the PIPE Financing, or (C) the status of such PIPE Investor either as an investor in the Company pursuant to the transactions
contemplated by the Purchase Agreement or as a party to the Purchase Agreement and related transaction documents. 

Going
Concern

For
the three months ended March 31, 2025 and 2024, we had