Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 91

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 91
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 be greatly reduced and its competitive position would be harmed. If Channel does not apply for patent protection prior to such publication or if Channel cannot otherwise maintain the confidentiality of its proprietary technology and other confidential information, then its ability to obtain patent protection or to protect its trade secret information may be jeopardized. Risks Related to Channel Common Stock The market price and trading volume of Channel common stock may experience rapid and substantial price volatility, which could cause purchasers of Channel common stock to incur substantial losses. Recently, the market prices and trading volume of shares of Channel common stock of other small publicly traded companies with a limited number of shares available to purchasers, have experienced rapid and substantial price volatility unrelated to the financial performance of those companies. Similarly, shares of Channel common stock may experience similar rapid and substantial price volatility unrelated to its financial performance, which could cause purchasers of Channel common stock to incur substantial losses, which may be unpredictable and not bear any relationship to its business and financial performance. Extreme fluctuations in the market price of Channel common stock may occur in response to strong and atypical retail investor interest, including on social media and online forums, the direct access by retail investors to broadly available trading platforms, the amount and status of short interest in Channel common stock and its other securities, access to margin debt, trading in options and other derivatives on shares of Channel common stock and any related hedging and other trading factors. If there is extreme market volatility and trading patterns in Channel common stock, it may create several risks for investors, including the following:

| • | the market price of Channel common stock may experience rapid and substantial increases or decreases unrelated to its operating performance or prospects, or macro or industry fundamentals; |

| • | if Channel’s future market capitalization reflects trading dynamics unrelated to its financial performance or prospects, purchasers of Channel common stock could incur substantial losses as prices decline once the level of market volatility has abated; |

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| • | if the future market price of Channel common stock declines, purchasers of shares of Channel common stock may be unable to resell such shares at or above the price at which they acquired them. Channel cannot assure such purchasers that the market of Channel common stock will not fluctuate or decline significantly in the future, in which case investors could incur substantial losses. |

Further, Channel may incur rapid and substantial increases or decreases in Channel common stock price in the foreseeable future that may not coincide in timing with the disclosure of news or developments by or affecting Channel. Accordingly, the market price of Channel common stock may fluctuate