Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 262

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 262
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 capital stock. The Channel stockholders who have executed lock-up agreements as of April 16, 2025 owned in the aggregate, approximately 25.8% of the shares of Channel’s outstanding common stock. The foregoing description of the lock-up agreements does not purport to be complete and is qualified in their entirety by the full text of the forms of lock-up agreement, which are attached hereto as Annex G, Annex Hand Annex I. Securities Purchase Agreement On April 16, 2025, the PIPE Investors entered into the Purchase Agreement with Channel, pursuant to which such PIPE Investors have agreed to subscribe for and purchase, and Channel has agreed to issue and sell to the PIPE Investors, an aggregate of approximately 50,100 of shares of Channel Series A Preferred Stock at a price per share equal to the Purchase Price, subject to adjustment as set forth in the Purchase Agreement. The gross proceeds from the PIPE Financing are expected to be approximately $50.1 million, consisting of approximately $50.0 million in cash and the conversion of approximately $0.1 million of principal and interest payable under an outstanding convertible note issued by Channel, before paying estimated expenses. The funding of the cash Purchase Price by Ligand, Nomis Bay and one other investor will be offset by the repayment of certain bridge loans issued by such investors to LNHC. The closing of the PIPE Financing is conditioned upon all conditions to the closing of the Merger being satisfied or waived, the Merger being set to occur substantially concurrently with the PIPE Financing, entry into the Royalty Agreements, as well as certain other conditions. The Merger is conditioned upon the PIPE Financing closing immediately prior to or concurrently with the closing of the Merger as well as certain other conditions. The Purchase Agreement contains customary representations and warranties of Channel. The Purchase Agreement also contains customary representations and warranties of the investors party thereto. Each investor’s obligation to purchase shares of Channel Series A Preferred Stock from Channel pursuant to the Purchase Agreement is subject to the satisfaction or waiver of certain conditions, at or before the closing date of the Transactions including, but not limited to, the ones listed below. These conditions can be waived by a PIPE Investor solely as to itself:

| (a) | Channel shall have duly executed and delivered to the PIPE Investors each of the transaction documents to which it is a party and Channel shall have duly executed and delivered to the PIPE Investors such aggregate number of shares of Channel Series A Preferred Stock as set forth across from such PIPE Investors’ name in column (3) of the