Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 42

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 42
---
 the shares of Channel common stock.

The Channel and LNHC boards of directors considered that Todd C. Davis, Chairman of the board of directors of Channel and a director of LNHC, is the Chief Executive Officer of Ligand, a stockholder of LNHC, and (A) Ligand will receive proceeds as a result of the Merger, (B) Ligand agreed to participate in the PIPE Financing, and (C) Mr. Davis will be appointed to the combined company’s board of directors in connection with the Merger.

The Channel and LNHC boards of directors were aware of and considered those interests, among other things, in reaching their decisions to approve and adopt the Merger Agreement and the Merger. These interests, among other factors, may have influenced the directors and executive officers of Channel and LNHC to support or approve the Merger.

For more information regarding the interests of Channel and LNHC directors and executive officers in the Merger, please see the sections titled “ The Merger-Interests of Channel Directors and Executive Officers in the Merger ” beginning on page 121 and “ The Merger-Interests of LNHC Directors and Executive Officers in the Merger ” beginning on page 124 of this information statement.

Channel stockholders may not realize a benefit from the Merger commensurate with the ownership dilution they will experience in connection with the Merger.

If the combined company is unable to realize the full strategic and financial benefits currently anticipated from the Merger, Channel stockholders will have experienced substantial dilution of their ownership interests without**

<div align='center'>22</div>

TABLE OF CONTENTS

receiving any commensurate benefit, or only receiving part of the commensurate benefit to the extent the combined company is able to realize only part of the strategic and financial benefits currently anticipated from the Merger. If the Merger is not completed, Channel’s stock price may fluctuate significantly. The market price of Channel common stock is subject to significant fluctuations. During the 12-month period ended April 23, 2025, the closing sales price of Channel common stock on The NYSE American ranged from a high of $3.80 on January 21, 2025 to a low of $0.45 on November 19, 2024. Market prices for securities of pharmaceutical, biotechnology and other life science companies have historically been particularly volatile. In addition, the market price of Channel common stock will likely be volatile based on whether stockholders and other investors believe that Channel can