Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 841

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 841
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 Partner Outstanding Shares, in which:

| (i) | “Aggregate Valuation” means the sum of (a) the Merger Partner Valuation, plus (b) the Public Company Valuation. |

| (ii) | “Merger Partner Allocation Percentage” the quotient determined by dividing (i) the Merger Partner Valuation by (ii) the Aggregate Valuation. |

| (iii) | “Merger Partner Merger Shares” means the product determined by multiplying (i) the Post-Closing Public Company Shares by (ii) the Merger Partner Allocation Percentage. |

| (iv) | “Merger Partner Outstanding Shares” means the total number of shares of Merger Partner Capital Stock outstanding immediately prior to the Effective Time, expressed on a fully-diluted and as-converted to Merger Partner Capital Stock basis calculated using the Treasury Stock Method. |

| (v) | Merger Partner Valuation” means $67,000,000. |

The terms and conditions of the Merger are more fully set forth in the Agreement. We understand that Merger Partner owns the FDA approved product Zelsuvmi, approved for the treatment of Molluscum contagiosum(molluscum) in adults and pediatric patients one year of age and older. You have asked for M&N Sarchet, Inc.’s (“ M&N”, “we,” “our”) opinion (“ Opinion”) as to whether the Merger Partner Valuation is fair from a financial point of view to the holders of shares of the Company.

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For purposes of the Opinion set forth herein, we have made such reviews, analyses and inquiries as we have deemed necessary and appropriate under the circumstances. Among other things, we have:

| 1) | Reviewed certain publicly available financial statements and other business and financial information of CHRO; |

| 2) | Reviewed certain financial and operating data concerning the Merger Partner; |

| 3) | Reviewed certain financial projections of Merger Partner prepared by Merger Partner management; |

| 4) | Reviewed the pro forma impact of the Merger on CHRO’s cash flow and certain financial ratios; |

| 5) | Reviewed the reported prices and trading activity of CHRO; |

| 6) | Compared the financial performance of CHRO and the prices and trading activity of CHRO Common Stock with that of certain other publicly traded companies comparable with CHRO, and their securities; |

| 7) | Compared the