Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 12

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 12
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 under various scenarios and its short- and long-term strategic objectives, and the risks associated with continuing to operate Channel on a stand-alone basis, particularly in light of the need to raise additional capital to fund pre-clinical and clinical activities and the associated dilution, the length of time until Channel, if successful with its development activities, would be in a position to commercialize any of its programs and the difficult capital markets for pre-revenue or non-commercial stage life sciences companies; |

| • | that the Special Committee, with the assistance of Channel’s financial advisors, undertook a comprehensive and thorough process of reviewing and evaluating multiple potential strategic alternatives, including the acquisition of new assets and independent development of existing assets, and reverse merger partner candidates to identify the opportunity that would, in the view of the Channel board of directors, create the most value for Channel stockholders; and |

| • | the Special Committee’s and Channel board of directors’ belief, after a thorough review of strategic alternatives and discussions with Channel’s senior management, financial advisors and legal counsel, that the Merger is more favorable to Channel stockholders than the potential value that might have resulted from other strategic alternatives available to Channel, including continuing to operate Channel on a stand-alone basis or conducting a dissolution and liquidation of Channel and distributing any available cash to its stockholders. |

For additional information, please see the section titled “ The Merger-Recommendation of the Special Committee; Channel Reasons for the Merger” beginning on page 107of this information statement. LNHC Reasons for the Merger (page 110) In the course of reaching its determination to authorize the Merger Agreement and approve the Merger, the LNHC board of directors considered a number of factors, including, but not limited to, the following (which factors are not necessarily presented in order of relative importance):

| • | that the Merger will provide LNHC’s current stockholder with greater liquidity by owning publicly-traded stock; |

| • | the potential increased access to sources of capital and a broader range of investors to support the commercialization of ZELSUVMI following consummation of the Merger compared to if LNHC continued to operate as a subsidiary of Ligand; |

| • | that the PIPE Financing will generate additional liquidity to fund the combined company; |

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| • | the belief of the LNHC board of directors, after a thorough review of strategic alternatives, that the Merger has a better return on investment for LNHC’s sole stockholder