Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 194

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 194
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archet to deliver the Fairness Opinion to the Channel board of directors in connection with its deliberations and consideration of the foregoing recommendations. In the course of reaching its determination and making its recommendation, the Special Committee considered a number of factors, including, but not limited to, the following (which factors are not necessarily presented in order of relative importance):

| • | that the historical and current information concerning Channel’s business, financial condition, operations and prospects, including financial projections of Channel under various scenarios and its short- and long-term strategic objectives, and the risks associated with continuing to operate Channel on a stand-alone basis, particularly in light of the need to raise additional capital to fund pre-clinical and clinical activities and the associated dilution, the length of time until Channel, if successful with its development activities, would be in a position to commercialize any of its programs and the difficult capital markets for pre-revenue or non-commercial stage life sciences companies; |

| • | that there are risks for Channel associated with Channel’s ability to attract and retain talent should Channel continue to operate on a stand-alone basis; |

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| • | that the Special Committee, with the assistance of Channel’s financial advisors, undertook a comprehensive and thorough process of reviewing and evaluating multiple potential strategic alternatives, including the acquisition of new assets and independent development of existing assets, and reverse merger partner candidates to identify the opportunity that would, in the view of the Channel board of directors, create the most value for Channel stockholders; |

| • | the Special Committee’s belief, after a thorough review of strategic alternatives and discussions with Channel’s senior management, financial advisors and legal counsel, that the Merger is more favorable to Channel stockholders than the potential value that might have resulted from other strategic alternatives available to Channel, including continuing to operate Channel on a stand-alone basis or conducting a dissolution and liquidation of Channel and distributing any available cash to its stockholders; |

| • | the Special Committee’s belief that, as a result of arm’s length negotiations with LNHC, Channel and its representatives negotiated the highest exchange ratio to which LNHC was willing to agree, and that the other terms of the Merger Agreement include the most favorable terms to Channel in the aggregate to which LNHC was willing to agree; |

| • | the Special Committee’s review with Channel management of LNHC’s current commercialization plans for its lead asset, ZELSUVMI, to confirm the likelihood that the combined company would possess sufficient resources or have access to sufficient