Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 200

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 200
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 and trading information with respect to Channel common stock; |

| • | the fact that Todd Davis, who serves as Chief Executive Officer and a director of Ligand, as a director of LNHC, and as Chairman of the Channel board of directors, recused himself from the Channel board of directors’ deliberations regarding the Merger and did not serve on the Special Committee of the Channel board of directors that approved the Merger; and |

| • | that the LNHC board of directors reviewed and considered the terms of the Merger Agreement, including the parties’ respective representations, warranties and covenants, and the conditions to their respective obligations to consummate the Merger, the issuance of shares of Channel Series A Preferred Stock and the other transactions contemplated by the Merger Agreement. See the section titled “The Merger Agreement” beginning on page129in this information statement for a detailed discussion of the terms and conditions of the Merger Agreement. |

In the course of its deliberations, the LNHC board of directors also considered a variety of risks and other countervailing factors related to the Merger and other transactions contemplated by the Merger Agreement, including, among others:

| • | the fact that Channel stockholders will be sharing participation of LNHC’s upside as part of the combined company; |

| • | that the exchange ratio used to establish the number of shares of Channel’s Series A Preferred Stock to be issued to Ligand in the Merger is fixed, and thus the relative percentage ownership of Channel’s stockholders and LNHC’s stockholders in the combined organization immediately following the completion of the Merger is similarly fixed; |

| • | the substantial expenses to be incurred in connection with the Merger and the other transactions contemplated by the Merger Agreement; |

| • | the fact that projections of future results of operations and synergies are estimates based on assumptions that may not be realized within the expected timeframe or at all; |

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| • | the possible volatility, at least in the short term, of the trading price of Channel common stock resulting from the announcement of the Merger Agreement; |

| • | the risk that the Merger might not be consummated in a timely manner or at all and the potential adverse effect of the public announcement of the Merger Agreement or on the delay or failure to complete the transactions contemplated by the Merger Agreement on Channel’s financial position; |

| • | the risk that the PIPE Financing might not be consummated in a timely manner or at