Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 286

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 286
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 value per share of Channel common stock, although the Reverse Stock Split would decrease the number of issued and outstanding shares of Channel common stock. Therefore, because the number of issued and outstanding shares of Channel common stock would decrease, the number of shares of Channel common stock remaining available for issuance by Channel in the future would increase.

Such additional shares of Channel common stock would be available for issuance from time to time for corporate purposes such as issuances of Channel common stock in connection with capital-raising transactions and acquisitions of companies or other assets, as well as for issuance upon conversion or exercise of securities such as convertible preferred stock, convertible debt, warrants or options convertible into or exercisable for Channel common stock. We believe that the availability of the additional shares of Channel common stock will provide Channel with the flexibility to meet business needs as they arise, to take advantage of favorable opportunities and to respond effectively in a changing corporate environment. For example, Channel may elect to issue shares of Channel common stock to raise equity capital, to make acquisitions through the use of stock, to establish strategic relationships with other companies, to adopt additional employee benefit plans or reserve additional shares of Channel common stock for issuance under such plans, where the Channel board of directors determines it advisable to do so, without the necessity of soliciting further stockholder approval, subject to applicable stockholder vote requirements under Nevada law and The NYSE American rules. If Channel issues additional shares of Channel common stock for any of these purposes, the aggregate ownership interest of Channel’s current stockholders, and the interest of each such existing stockholder, would be diluted, possibly substantially.

The additional shares of Channel common stock that would become available for issuance upon an effective Reverse Stock Split could also be used by Channel to oppose a hostile takeover attempt or delay or prevent a change of control or changes in or removal of Channel’s management, including any transaction that may be favored by a majority of Channel’s stockholders or in which Channel’s stockholders might otherwise receive a premium for their shares of Channel common stock over then-current market prices or benefit in some other manner. Although the increased proportion of authorized but unissued shares of Channel common stock to issued shares of Channel common stock could, under certain circumstances, have an anti-takeover effect, the Reverse Stock Split is not being proposed in order to respond to a hostile takeover attempt or to an attempt to obtain control of Channel.

#### Fractional Shares
Channel will not issue fractional shares as a result of the Reverse Stock Split. Instead, in the event that a holder of pre-Reverse Stock Split