Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 43

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 Spray Formulations.

In
connection with the Benuvia License Agreement, we agreed to pay Benuvia a six and one-half percent (6.5%) royalty on net sales
of the Spray Formulations for a period of up to 15 years from the date of the first commercial sale of any of the Spray Formulations.
In addition, on December 23, 2023, we entered into a stock issuance agreement with Benuvia pursuant to which we issued to Benuvia
384,226 shares of our Common Stock, which may be offered and sold pursuant to the resale prospectus which forms a part of the
Registration Statement.

We
currently do not have strategy and development plans for the Spray Formulations licensed from Benuvia. 

Merger
Agreement

On
April 16, 2025, the Company, CHRO Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of the Company (the “Merger
Sub”), and LNHC, Inc., a Delaware corporation (“LNHC”), and solely for the purposes of Article III thereof,
Ligand Pharmaceuticals Incorporated, a Delaware corporation and the parent of LNHC (“Ligand”) entered into
an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, among other matters, and subject to the
satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into LNHC, with LNHC
continuing as a wholly-owned subsidiary of the Company and the surviving corporation of the merger (the “Merger”).
The Merger is intended to qualify for federal income tax purposes as a tax-free reorganization under the provisions of Section
368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), or, in the event that the former stockholders
of LNHC and certain other persons are in “control” of the Company immediately after the Merger (within the meaning
of Section 368(c) of the Code), the Merger is also intended to qualify as a non-taxable exchange of shares of LNHC capital stock
for the Company’s Common Stock, within the meaning of Section 351(a) of the Code.

Subject
to the terms and conditions of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each
then outstanding share of LNHC capital stock will be converted into the right to receive a number of shares of Series A Convertible