Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 46

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 46
---
 the representations and
warranties of the other party being true and correct as of the date of the Merger Agreement and as of the closing date of the
Merger, generally subject to an overall material adverse effect qualification, the performance in all material respects by the
other party of its obligations under the Merger Agreement required to be performed on or prior to the date of the closing of the
Merger, and the absence of any material adverse effect affecting the other party that is continuing on the closing date.

The
Merger Agreement contains certain termination rights of each of the Company and LNHC, including, subject to compliance with the
applicable terms of the Merger Agreement, the right of each party to terminate the Merger Agreement if the other party exercises
its “fiduciary out” prior to receiving the requisite stockholder consent. All fees and expenses incurred in connection
with the Merger Agreement and the other transactions contemplated by the Merger Agreement will be paid by the party incurring
such expenses, whether or not the Merger is consummated. Notwithstanding the foregoing, the Company and LNHC will equally share
(i) all fees and expenses of the exchange agent and (ii) all fees and expenses, other than accountants’ and attorneys’
fees, incurred with respect to the printing filing and mailing of an information statement and any amendments or supplements thereto.

Immediately
following the Merger, the board of directors of the combined company will consist of Mr. Scott Plesha, Mr. Peter Greenleaf, Mr.
Matt Pauls, Mr. Todd Davis, Mr. Richard Baxter, Dr. Richard Malamut and Mr. Ezra Friedberg.

Immediately
following the Merger, the executive management team of the combined company is expected to consist of members of the LNHC and
CHRO executive management teams prior to the Merger, including Scott Plesha as Chief Executive Officer and Francis Knuettel II
as Chief Financial Officer.

30

Securities
Purchase Agreement

On
April 16, 2025, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement” and
together with the Merger Agreement, the “Transaction Agreements”) with LNHC, and certain investors, which includes
Nomis Bay Ltd (“Nomis Bay”) and Ligand (collectively, the “PIPE Investors”), pursuant to which the PIPE
Investors have agreed to subscribe for and purchase in cash an aggregate of approximately 50,100 of shares