Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 44

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 44
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ger Agreement, which could adversely affect their respective business prospects. Covenants in the Merger Agreement impede the ability of Channel and LNHC to make acquisitions during the pendency of the Merger, subject to specified exceptions. As a result, if the Merger is not completed, the parties may be at a disadvantage to their competitors during that period. In addition, while the Merger Agreement is in effect, each party is generally prohibited from soliciting, proposing, seeking, initiating or knowingly encouraging, facilitating or supporting any inquiries, indications of interest, proposals or offers that constitute or may reasonably be expected to lead to certain transactions involving a third party, including a merger, sale of assets or other business combination, subject to specified exceptions. Any such transactions could be favorable to such party’s stockholders, but the parties may be unable to pursue them. For more information, see the section titled “ The Merger Agreement-Non-Solicitation” beginning on page 134of this information statement.

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#### TABLE OF CONTENTS
**Certain provisions of the Merger Agreement may discourage third parties from submitting competing proposals, including proposals that may be superior to the transactions contemplated by the Merger Agreement.

The terms of the Merger Agreement prohibit each of Channel and LNHC from soliciting competing proposals or cooperating with persons making unsolicited takeover proposals, except in limited circumstances as described in further detail in the section titled “ The Merger Agreement-Non-Solicitation .”

Because the lack of a public market for LNHC capital stock makes it difficult to evaluate the fair market value of LNHC capital stock, Channel may pay more than the fair market value of LNHC capital stock and/or Ligand may receive consideration in the Merger that is less than the fair market value of LNHC capital stock.

The outstanding capital stock of LNHC is privately held and is not traded in any public market. The lack of a public market makes it difficult to determine the fair market value of LNHC capital stock. Because the percentage of Channel equity to be issued to Ligand was determined based on negotiations between the parties, it is possible that the value of the Channel Series A Preferred Stock to be received by Ligand will be less than the fair market value of LNHC capital stock, or Channel may pay more than the aggregate fair market value for LNHC capital stock.**

#### Lawsuits could delay or prevent the Merger.
Putative stockholder complaints, including stockholder class action complaints, and other complaints may be filed against Channel, Ligand, LNHC