Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 296

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 296
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 it is not possible for us to predict the total number of Purchase Shares that we will sell
to Tikkun under the CEF Purchase Agreement, the purchase price per share that Tikkun will pay for shares purchased from us under
the CEF Purchase Agreement, or the aggregate gross proceeds that we will receive from those purchases by Tikkun under the CEF
Purchase Agreement.

62 

Although
the CEF Purchase Agreement provides that we may sell up to an aggregate of $30.0 million of Purchase Shares to Tikkun, only 2,000,000
Purchase Shares are being registered for resale by Tikkun under the registration statement on Form S-1 filed with the SEC on July
29, 2024, which we may elect to sell to Tikkun, in our sole discretion, from time to time from and after the Commencement Date
under the CEF Purchase Agreement.

If
after the Commencement Date, we elect to sell to Tikkun all of the 2,000,000 Purchase Shares being registered for resale under
the prospectus in the registration statement on Form S-1 filed with the SEC on July 29, 2024, that are available for sale by us
to Tikkun in purchases under the CEF Purchase Agreement, depending on the market prices of our Common Stock during the applicable
volume weighted average price purchase valuation period for each purchase made pursuant to the CEF Purchase Agreement, the actual
gross proceeds from the sale of all such shares may be substantially less than the $30.0 million (the “Total Commitment”)
available to us under the CEF Purchase Agreement, which could materially adversely affect our liquidity.

If
it becomes necessary for us to issue and sell to Tikkun under the CEF Purchase Agreement more than 2,000,000 Purchase Shares being
registered for resale under the registration statement on Form S-1 filed with the SEC on July 29, 2024 in order to receive aggregate
gross proceeds equal to the Total Commitment of an aggregate of $30.0 million under the CEF Purchase Agreement, we must file with
the SEC one or more additional registration statements to register under the Securities Act the resale by Tikkun of any such additional
Purchase Shares we wish to sell from time to time under the CEF Purchase Agreement, which the SEC must declare effective. Tikkun
will not be required to purchase any Purchase Shares if such sale would result in Tikkun