Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 39

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 39
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 have the discretion to complete the Merger without seeking further stockholder approval, which decision may have a material adverse effect on the Channel stockholders. For example, if LNHC and Channel agree to waive the requirement that The NYSE American application be accepted for listing prior to the consummation of the Merger, and their respective boards of directors elect to proceed with the closing of the Merger, The NYSE American may notify the combined company of its determination to delist the company’s securities based upon the failure to satisfy the initial inclusion criteria. The combined company may appeal the determination to a hearings panel, which will stay the delisting action pending a panel decision. If the combined company does not appeal the determination, its common stock will be delisted.

Notwithstanding the foregoing, certain closing conditions may not be waived due to applicable law or otherwise. The following closing conditions may not be waived: receipt of the requisite stockholder approvals; the filing of the information statement on Schedule 14C; and the absence of any order or injunction that has the effect of prohibiting the consummation of the Merger. For more information about the conditions to the completion of the Merger, see the section titled “ The Merger Agreement-Conditions to the Completion of the Merger .”

The Merger may be completed even though a material adverse effect may result from the announcement of the Merger, industry-wide changes or other causes.

In general, neither Channel nor LNHC is obligated to complete the Merger if there is a material adverse effect affecting the other party between April 16, 2025, the date of the Merger Agreement, and the closing of the Merger. However, certain types of changes are excluded from the concept of a “material adverse effect.” Such exclusions include but are not limited to changes in general economic or market conditions, industry wide changes, changes in GAAP, changes in laws, rules or regulations of general applicability or interpretations thereof, natural disasters, epidemics, pandemics or other disease outbreaks, outbreaks of major hostilities or acts of terrorism, changes resulting from the announcement or pendency of the Merger, and failures to meet internal guidance, budgets, plans or forecasts. Therefore, if any of these events were to occur impacting Channel or LNHC, the other party would still be obliged to consummate the closing of the Merger. If any such adverse changes occur and Channel and LNHC consummate the closing of the Merger, the stock price of the combined company may suffer. This in turn may