Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 18

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 18
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 • | publicly propose to do any of the foregoing. |

Board Recommendation Change Subject to specified exceptions described in the Merger Agreement, Channel has agreed that the Channel board of directors (and any committee thereof) may not take any of the following actions, each of which are referred to in this information statement as a Channel board of directors recommendation change:

| • | fail to include its recommendation to the Channel stockholders in connection with the approval of the share issuance and ratification of the Name Change Charter Amendment in this information statement or withdraw or modify such recommendation in a manner adverse to LNHC; |

| • | withhold, withdraw or modify (or publicly propose to withhold, withdraw or modify) the approval or recommendation of the Channel board of directors with respect to the share issuance or the Name Change Charter Amendment to change the name of Channel to “Pelthos Therapeutics Inc.”; or |

| • | after the receipt by Channel of an Acquisition Proposal and LNHC’s subsequent request in writing that the Channel board of directors reconfirm its recommendation to the Channel stockholders to solicit their approval of the required Channel voting proposals at the Channel special meeting, fail to reconfirm its recommendation within ten business days after its receipt of LNHC’s request; |

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| • | fail to recommend against acceptance of a tender offer within ten business days after commencement; or |

| • | propose publicly to approve, endorse, adopt or recommend, or approve, endorse, adopt, or recommend any Acquisition Proposal. |

Subject to specified exceptions described in the Merger Agreement, LNHC agreed that the LNHC board of directors may not take any of the following actions, each of which are referred to in this information statement as a LNHC board of directors recommendation change:

| • | withhold, withdraw or modify (or publicly propose to withhold, withdraw or modify) the approval or recommendation of the LNHC board of directors with respect to the Merger; |

| • | fail to recommend against acceptance of a tender offer within ten business days after commencement; or |

| • | propose publicly to approve, endorse, adopt or recommend, or approve, endorse, adopt, or recommend any Acquisition Proposal. |

Termination of the Merger Agreement Either Channel or LNHC may terminate the Merger Agreement under certain circumstances, which would prevent the Merger from being consummated. Lock-Up Agreements Concurrently with the execution of the Purchase Agreement, each of (i) LNHC’s and Channel’s executive officers and directors, (ii) certain investors who