Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 201

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 201
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 all; |

| • | the additional expenses and obligations to which LNHC’s business will be subject following the Merger that LNHC has not previously been subject to, and the operational changes to LNHC’s business, in each case that may result from being a public company; |

| • | the terms of the Merger Agreement, including covenants relating to (1) the two companies’ conduct of their respective businesses during the period between the signing of the Merger Agreement and the completion of the Merger and the other transactions, including the requirement that the two companies conduct business only in the ordinary course, subject to specific exceptions and (2) the restrictions on LNHC’s ability to solicit alternative transaction proposals; |

| • | the potential for litigation relating to the proposed transactions and the associated costs, burden and inconvenience involved in defending those proceedings; |

| • | the potential conflict of interest created by the fact that Channel’s executive officers and directors have financial or other interests in the Merger that may be different from, or in addition to, those of other stockholders, as more fully described below in “Interests of the Channel Directors and Executive Officers in the Merger”; and |

| • | various other risks associated with the combined company and the Merger, including those described in the sections titled “RiskFactors” beginning on page20and “Cautionary Note Regarding Forward-Looking Statements” beginning on page17of this information statement. |

After taking into account all of the factors set forth above, as well as others, the LNHC board of directors concluded that the risks, uncertainties, restrictions and potentially negative factors associated with the Transactions were outweighed by the potential benefits of the Transactions to LNHC and its sole stockholder. The foregoing information and factors considered by the LNHC board of directors are not intended to be exhaustive but are believed to include all of the material factors considered by the LNHC board of directors. In view of the wide variety of factors considered in connection with its evaluation of the Merger and the other transactions contemplated by the Merger Agreement and the complexity of these matters, the LNHC board of directors did not find it useful, and did not attempt, to quantify, rank or otherwise assign relative weights to these factors. In considering the factors described above, individual members of the LNHC board of directors may have given different weight to different factors. Opinion of M&N Sarchet to the Channel Special Committee and Channel Board of Directors Channel engaged M&N Sarchet to issue the Fairness