Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 32

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 Convertible Preferred Stockholder Side Letters with the Company, pursuant
to which, immediately after the closing of the PIPE Financing on July 1, 2025, the PIPE Investors converted 23,810 shares of Series
A Preferred Stock not exceeding such PIPE Investors’ Maximum Percentage into an aggregate of 2,381,000 shares of the Company’s
Common Stock (after giving effect to the Reverse Stock Split), by providing the Company with a completed and signed Conversion
Notice under the Certificate of Designation.

Registration
Rights Agreement

On
the Closing Date and in connection with the Merger, the Company and the PIPE Investors entered into a registration rights agreement
(the “Registration Rights Agreement”) pursuant to which the PIPE Investors are entitled to certain resale registration
rights with respect to shares of the Company’s Common Stock issuable upon conversion of the Series A Preferred Stock issued
to the PIPE Investors. Pursuant to the Registration Rights Agreement, the Company is required to prepare and file a resale
registration statement with the SEC on or prior to the later of (i) 30 calendar days following the closing of the PIPE Financing
and (ii) fifteen (15) calendar days after the Company’s next periodic report required pursuant to Section 13 of the Exchange
Act. The Company is obligated to use reasonable best efforts to cause this registration statement to be declared effective by
the SEC within 120 calendar days following the closing of the PIPE Financing (or within 150 calendar days following the closing
of the PIPE Financing if the SEC reviews the registration statement).

The
Company will, among other things, indemnify the PIPE Investors, their directors, officers, shareholders, members, partners, employees,
agents, advisors and representatives of the foregoing and each person who controls the PIPE Investors (a) under the registration
statement, including from certain liabilities and fees and expenses (excluding underwriting discounts and selling commissions
and all legal fees and expenses of legal counsel for any selling holder) and (b) under the Securities Purchase Agreement, including
with respect to breaches of the Company’s representations, warranties, and covenants under the Securities Purchase Agreement.

Contribution
Agreement and IP Assignment and Assumption Agreement

On
July 1, 2025 (the “Contribution Date”), the Company entered into a Contribution Agreement (the “Contribution
Agreement”) with Channel Pharmaceutical Corporation, a Nevada corporation (“Pharmaceutical Sub”) - a newly formed,
wholly-owned subsidiary of the Company. Pursuant to the terms of the Contribution