Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 172

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 172
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 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 remain unchanged.

Each
share of Series A Preferred Stock is convertible at any time at the holder’s option into a number of shares of Common Stock,
par value $0.0001 per share equal to (i) $1,000, subject to adjustment, plus any all declared and unpaid dividends thereon as
of such date of determination, plus any other amounts owed to such holder pursuant to the Certificate of Designations, divided
by (ii) $1 (adjusted to $10 as a result of the ten-for-one Reverse Stock Split), subject to adjustments.

In
general, a holder of shares of Series A Preferred Stock may not convert any portion of Series A Preferred Stock if the holder,
together with its affiliates, would beneficially own the Maximum Percentage, of the number of shares of the Company’s Common
Stock outstanding immediately after giving effect to such exercise, provided, however, that a holder may increase or decrease
the Maximum Percentage by giving 61 days’ notice to the Company, but not to any percentage in excess of 9.99%.

35 

The
shares of Series A Preferred Stock to be issued and sold to the PIPE Investors 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
closing of the