Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 28

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 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, the Company 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
Stock and the shares of Common Stock issuable upon conversion of the Series A Preferred Stock issued in the PIPE Financing will
be issued pursuant to an exemption from the registration requirements of the Securities Act, and the resale of the shares of Common
Stock issuable upon conversion of the Series A Preferred Stock will be registered pursuant to a resale registration statement
(the “Registration Statement”).

The
Company also agreed to defend, indemnify and hold harmless the PIPE Investors and their respective stockholders, partners, members,
officers, directors, employees, direct or indirect investors, and any of their agents or other representatives against any and
all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (including reasonable attorneys’ fees) arising out of or relating to: (i) any misrepresentation or breach of any
representation or warranty made by the Company or its subsidiaries, (ii) any breach of any covenant, agreement or obligation owed
by the Company or its subsidiaries