Company: PTHS
Filing Date: 2025-04-17
Form Type: 8-K
Source: 0001753926-25-000652
Chunk: 3

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-04-17
Form: 8-K
Item: Item 1.01
Chunk 3
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 the Merger Agreement if the other party exercises its “fiduciary
out” prior to receiving the requisite stockholder consent. All fees and expenses incurred in connection with the Merger Agreement
and the other transactions contemplated by the Merger Agreement will be paid by the party incurring such expenses, whether or not
the Merger is consummated. Notwithstanding the foregoing, Channel and LNHC will equally share (i) all fees and expenses of the
exchange agent and (ii) all fees and expenses, other than accountants’ and attorneys’ fees, incurred with respect to
the printing filing and mailing of an information statement and any amendments or supplements thereto.

Immediately following the Merger, the board
of directors of the combined company will consist of Mr. Scott Plesha, Mr. Peter Greenleaf, Mr. Matt Pauls, Mr. Todd Davis, Mr.
Richard Baxter, Dr. Richard Malamut and Mr. Ezra Friedberg.

Immediately following
the Merger, the executive management team of the combined company is expected to consist of members of the LNHC and CHRO executive
management teams prior to the Merger, including Scott Plesha as Chief Executive Officer and Francis Knuettel II as Chief Financial
Officer.

Securities Purchase Agreement

On April 16, 2025, Channel entered into
a securities purchase agreement (the “ Securities Purchase Agreement” and together with the Merger Agreement,
the “ Transaction Agreements”) with LNHC, and certain investors, which includes Nomis Bay Ltd (“ Nomis
Bay”) and Ligand (collectively, the “ PIPE Investors”), pursuant to which the PIPE Investors have agreed
to subscribe for and purchase in cash an aggregate of approximately 50,100 of shares of Series A Preferred Stock, at a price per
share equal to $1,000 (the “ Purchase Price”) (such transaction, the “ PIPE Financing” and
together with the Merger, the “ Transactions”). The PIPE Financing is expected to close immediately prior to
the closing of the Merger. The gross proceeds from the PIPE Financing are expected to be approximately $50.1 million, which amount
will include the cancellation of any outstanding amounts under certain bridges notes provided by certain of the PIPE Investors,
before paying estimated expenses. The closing of the PIPE Financing is conditioned upon the closing of the Merger, entry into the
Royalty Agreements (as defined in the Securities Purchase Agreement), as well as certain other conditions. The Series A Preferred