Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 454

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 454
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holder. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting, or the designation of, such class or series, any or all of which may be greater than the rights of Common Stock. The issuance of Channel preferred stock could adversely affect the voting power of holders of Common Stock and the likelihood that such holders will receive dividend payments and payments upon Channel’s liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change in control of the Company or other corporate action.

#### Series A Convertible Preferred Stock
In connection with the close of the Merger, Channel will file a Series A Certificate of Designations with the Secretary of State of the State of Nevada designating 150,000 shares of preferred stock as Channel Series A Preferred Stock.

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#### TABLE OF CONTENTS
Dividend Rights

Holders of Channel Series A Preferred Stock are entitled to receive dividends as and when declared by Channel’s board of directors, in its sole discretion. Any such dividends are payable in cash out of legally available funds and are calculated based on the stated value of each share of Channel Series A Preferred Stock. Dividends are not guaranteed and will only be paid if and when declared by Channel’s board of directors.

Voting Rights

Holders of Channel Series A Preferred Stock are entitled to receive notice of and vote at all shareholder meetings alongside holders of Channel common stock, voting together as a single class provided, that each Holder will be deemed to have waived any voting rights such that the aggregate voting rights of any Channel common stock beneficially owned by such holder and/or any of its Attribution Parties (as defined in the Series A Certificate of Designations), collectively, on any record date shall not exceed the Maximum Percentage (as defined below). Each share of Channel Series A Preferred Stock has the right to vote together with the shares of Channel common stock in an amount equal to the voting power of the aggregate number of shares of Channel common stock that would be issuable to such holder upon conversion of such share of Channel Series A Preferred Stock as if the conversion price of such share of Channel Series A Preferred Stock was $1.255 (the “Voting Conversion Price”), such that each share of Channel Series A Preferred Stock shall be entitled to vote, with the aggregate voting power of a holder’s Channel Series A Preferred Stock limited by the Maximum Percentage, subject to adjustment