Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 130

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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 Stock share amounts included in these Notes to the Company’s financials are presented on a post-split basis and reflect
the Reverse Split.

On
July 2, 2025, Pelthos commenced trading on the NYSE American under the ticker symbol ”PTHS”, and Ligand invested
$18 million as part of a broader $50.1 million equity raise, entitling Ligand to a 13% royalty on worldwide net sales of
ZELSUVMI—the FDA-approved topical treatment for molluscum contagiosum. These actions occurred immediately following the
Merger and reflect both the successful closing of the transaction and the initiation of the commercial launch for ZELSUVMI in
July 2025. This material milestone underscores management’s near-term strategic direction.

Securities
Purchase Agreement

Concurrently
with the execution of the Merger Agreement, the Company entered into the Securities Purchase Agreement with LNHC and certain investors,
which includes Ligand (collectively, the “PIPE Investors”), pursuant to which, among other things, on the 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 cash and the conversion of approximately $0.1 million of principal and interest payable under an
outstanding convertible note issued by the Company, before paying estimated expenses. The Securities Purchase Agreement contained
customary representations and warranties of the Company and LNHC, on the one hand, and the PIPE Investors, on the other hand,
and customary conditions to closing.

On
July 1, 2025, the Company, LNHC and the PIPE Investors entered into the Securities Purchase Agreement Amendment, pursuant to which,
the Company, LNHC and the PIPE Investors consented to the inclusion of two additional PIPE Investors in the PIPE Financing and
a corresponding decrease in the amount of certain PIPE Investors’ investments in the PIPE Financing such that the aggregate
amount of the PIPE Financing would