Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 227

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 227
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 be eligible to be compensated as non-employee directors of Channel pursuant to the Channel non-employee director compensation policy that is expected to remain in place following the Effective Time. Limitations of Liability and Indemnification For a discussion of the indemnification and insurance provisions related to the LNHC directors and officers under the Merger Agreement, please see the section titled “ The Merger Agreement-Indemnification and Insurance for Directors and Officers” beginning on page 138of this information statement. Form of the Merger Subject to the terms and conditions of the Merger Agreement, and in accordance with Delaware law, at the completion of the Merger, Merger Sub, a wholly-owned subsidiary of Channel formed by Channel in connection with the Merger, will merge with and into LNHC, with LNHC surviving as a wholly-owned subsidiary of Channel. Merger Consideration At the Effective Time, upon the terms and subject to the conditions set forth in the Merger Agreement, each outstanding share of LNHC capital stock will be automatically converted solely into the right to receive a number of shares of Channel Series A Preferred Stock equal to the exchange ratio described in more detail below. Fractional Shares No fractional shares of Channel Series A Preferred Stock will be issued in connection with the Merger, and no certificates or scrip for any such fractional shares will be issued and such fractional share interests shall not entitle the owner thereof to vote or to any other rights of a stockholder of Channel. Any fractional shares of Channel Series A Preferred Stock resulting from the conversion of LNHC capital stock into the right to receive a number of shares of Channel Series A Preferred Stock equal to the exchange ratio (after aggregating all fractional shares of Channel Series A Preferred Stock issuable to such holder) will be rounded down to the nearest whole share of Channel Series A Preferred Stock, with cash being paid in lieu of such fractional shares of Channel Series A Preferred Stock eliminated by such rounding. Exchange Ratio The exchange ratio represents the number of shares of Channel common stock issuable upon conversion of the Channel Series A Preferred Stock that will be received for each LNHC share outstanding in the Merger and is based on a stipulated value for Channel of $15 million (excluding the PIPE Financing) and for LNHC of $67 million. Based on Channel’s and LNHC’s capitalization as of May 2, 2025, Ligand is expected to receive an aggregate of approximately 31,599.44 shares of Channel Series A Preferred Stock in the Merger. This amount is an estimate