Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1506

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7A
Chunk 1506
---
 each of their obligations solely with respect to the Series B Preferred Stock under the Series B Securities
Purchase Agreement and a certain Registration Rights Agreement between the Company and the Standby Investor, which was required
to be delivered pursuant to the Series B Securities Purchase Agreement.

    F-20 

Rights
Offering

On
November 22, 2023, the Company commenced a rights offering (the “Rights Offering”) pursuant to which the Company
distributed non-transferable subscription rights (“Subscription Rights”) to each holder of its Common Stock held as
of 5:00 p.m. Eastern Standard Time on November 22, 2023, the record date for the Rights Offering (the “Rights Offering Record
Date”). The Subscription Rights could be exercised at any time during the subscription period, which commenced on November
22, 2023 and expired at 5:00 p.m., Eastern Standard Time, on December 1, 2023. Each Subscription Right entitled the eligible holder
to purchase up to three shares of the Company’s Common Stock at a price per whole share of Common Stock of $0.1008 (the
“Subscription Price”). Holders who fully exercised their rights could also subscribe for additional shares of Common
Stock not subscribed for by other holders on a pro rata basis. In addition, the Company could distribute to one or more additional
persons, at no charge to such person, additional non-transferable subscription rights to purchase shares of its Common Stock in
the Rights Offering at the same Subscription Price, without notice to the holders of its Common Stock. Upon the closing of the
Rights Offering, the Company issued an aggregate of 2,533,853 shares of Common Stock and received aggregate net proceeds
of $255,412, after giving effect to the Representative Affiliate Transactions (as defined below), which it intended to use primarily
for general corporate purposes and expenses associated with the IPO.

Recission
Agreement

On
February 10, 2024, the Company entered into a Stock Rescission Agreement with certain affiliates of A.G.P. pursuant to which the
Company rescinded 111,129 shares of Common Stock held by such affiliates of A.G.P. and agreed to refund an aggregate
of $91,512 paid by such affiliates of A.G.P. in consideration therefor within 30 days of the effective date of the Stock
Rescission Agreement. At December 31, 2024, all such amounts have been paid pursuant to