Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 10

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 10
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 of the shares of combined company capital stock, in each case, on a fully diluted basis, subject to certain assumptions.

Each option to purchase shares of Channel common stock, whether vested or unvested, and each Channel restricted stock unit award, in each case, that is issued and outstanding immediately prior to the Effective Time, will survive the closing and remain outstanding in accordance with its terms.

For a more complete description of the Merger and the exchange ratio please see the section titled “ The Merger ” beginning on page 103 in this information statement.

The Merger will be completed as promptly as practicable after all of the conditions to completion of the Merger are satisfied or waived, including 20 calendar days having elapsed following the commencement of mailing of this information statement to Channel’s stockholders, but in any event no later than the second business day after satisfaction or, to the extent permitted by law, waiver of the condition precedents as set forth in the Merger Agreement (other than those conditions that by their nature are to be satisfied at the closing of the Merger, but subject to the satisfaction or (to the extent permitted by law) waiver of such conditions by remote exchange of electronic documents), unless another date or time is agreed to in writing by Channel and LNHC. Channel and LNHC are working to complete the Merger as quickly as practicable. In connection with the closing of the Merger, Channel will be renamed “Pelthos Therapeutics Inc.” For more information, see the section titled “ The Name Change Charter Amendment ” beginning on page 154 in this information statement.

#### PIPE Financing
In connection with the foregoing and concurrently with the execution of the Merger Agreement, Channel and LNHC entered into the Purchase Agreement with the PIPE Investors, pursuant to which the PIPE Investors have agreed to subscribe for and purchase, and Channel has agreed to issue and sell to the PIPE Investors, an aggregate of 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 $50.1 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