Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 61

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 a securities purchase agreement (the “November 2025 Securities
Purchase Agreement”) with certain investors, including Ligand (collectively, the “Investors”), pursuant to which,
among other things, on the Convertible Note Financing Closing Date, the Investors purchased for cash, and the Company issued and
sold to the Investors, senior secured convertible notes of the Company (the “Convertible Notes”) in the aggregate original
principal amount of $18,000, which are convertible into shares of the Company’s common stock, par value $0.0001 per share
(the “Convertible Note Financing”). The gross proceeds from the Convertible Note Financing were approximately $18,000, before paying estimated expenses, bearing an 8.5% interest rate
per annum, payable quarterly in arrears. The Convertible Notes will mature on November 6, 2027, unless earlier repurchased, redeemed
or converted into shares of common stock in accordance with their terms. The November 2025 Securities Purchase Agreement contained customary representations
and warranties of the Company, on the one hand, and the Investors, on the other hand, and customary conditions to closing. The
November 2025 Securities Purchase Agreement generally prohibits the Company from issuing securities without the written consent
of the Required Holders (as defined in the November 2025 Securities Purchase Agreement), but includes exceptions for specific issuances
of securities, including in connection with the independent funding and development of the Company’s historical assets relating
to the sodium-ion channel known as NaV1.7 for the treatment of various types of systemic chronic pain, acute and chronic eye pain
and post-surgical nerve blocks. The Investors have approved Ligand to serve as collateral agent (the “Collateral Agent”)
under the Pledge Agreement and the other Security Documents (as defined in the November 2025 Securities Purchase Agreement) and
have authorized the Collateral Agent to take action on behalf of the Investors in accordance with the terms of the November 2025
Securities Purchase Agreement and the Security Documents. The Convertible Note Financing was approved by the vote of the disinterested
directors of the board of directors of the Company.

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As partial consideration for the Convertible
Notes, the Company granted to each of the Investors (i) a 5.0% royalty on net sales of XepiTM (ozenoxacin) cream,
for topical use (described below), and all other derivatives and modifications thereof (“Xepi”), to