Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 11

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 11
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. 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 Channel Series A Preferred Stock to be issued pursuant to the Purchase Agreement will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and will be issued and sold in reliance on the exemption from registration requirements thereof provided by Section 4(a)(2) of the Securities Act as a transaction by an issuer not involving a public offering. At the closing of the PIPE Financing, Channel will enter into a registration rights agreement (the “Registration Rights Agreement”) with the PIPE Investors pursuant to which the

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PIPE Investors will be entitled to certain resale registration rights with respect to shares of Channel common stock issuable upon conversion of the Channel Series A Preferred Stock issued to the PIPE Investors. Pursuant to the Registration Rights Agreement, Channel will be required to prepare and file a resale registration statement on Form S-1 with the SEC within 30 days following the closing of the PIPE Financing. Channel shall use its commercially reasonable efforts to cause such resale registration statement to be declared effective by the SEC within 120 days following the closing of the PIPE Financing (or within 150 days following the PIPE Financing if the SEC reviews such resale registration statement). The PIPE Financing is contingent upon, among other things, all conditions to the closing of the Merger being satisfied or waived and the Merger being set to occur substantially concurrently with the PIPE Financing. Channel’s Reasons for the Merger (page 107) During the course of its evaluation of the Merger Agreement and the transactions contemplated by the Merger Agreement, the Special Committee and the Channel board of directors held numerous meetings, consulted with Channel’s senior management, legal counsel and financial advisors, and reviewed and assessed a significant amount of information. In reaching its decision to approve the Merger Agreement and the transactions contemplated by the Merger Agreement, the Channel board of directors considered numerous factors that it viewed as supporting its decision to approve the Merger Agreement. Several factors considered by the Special Committee and the Channel board of directors included:

| • | 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