Company: PTHS
Filing Date: 2025-09-29
Form Type: 424B3
Source: 0001753926-25-001561
Chunk: 60

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-09-29
Form: 424B3
Chunk 60
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 Common Stock that are reserved for future grants or sale under our amended and restated equity incentive plan. |

<div align='center'>34

USE OF PROCEEDS</div>

We will not receive any of the proceeds from the sale of our Common Stock by the Selling Stockholders. The Selling Stockholders will receive all of the net proceeds from the sales of the shares of our Common Stock offered by them pursuant to this prospectus. We have agreed to bear the expenses relating to the registration of the Common Stock for the Selling Stockholders.

<div align='center'>35

PRIVATE PLACEMENT OF SERIES A PREFERRED STOCK</div>

On April 16, 2025, the Company entered
into the Merger Agreement with Merger Sub, LNHC and, solely for purposes of Article III thereof, Ligand, pursuant to which (i)
Merger Sub merged with and into LNHC, with LNHC as the surviving company in the merger and, after giving effect to such merger,
continuing as a wholly-owned subsidiary of the Company (the “Merger”) and (ii) the Company’s name was changed
from Channel Therapeutics Corporation to Pelthos Therapeutics Inc. In connection with the Merger, the Company issued 31,278 shares
of the Company’s Series A Preferred Stock as consideration for the LNHC shares (the “Merger Consideration Shares”).

On April 16, 2025, the Company entered
into the Securities Purchase Agreement, pursuant to which, among other things, on July 1, 2025, the date of the consummation of
the transaction contemplated by the Securities Purchase Agreement (the “PIPE Closing Date”) and immediately prior to
the consummation of the Merger, the Selling Stockholders purchased (either for cash or in exchange for the conversion of principal
and interest payable under an outstanding convertible note issued by the Company), and the Company issued and sold to the Selling
Stockholders (the “PIPE Investors”), an aggregate of 50,100 shares of the Company’s Series A Preferred Stock
at a price per share equal to $1,000 (such transaction, the “PIPE Financing”). The gross proceeds from the PIPE Financing
were approximately $50.1 million, consisting of approximately $50.0 million in cash and the conversion of approximately $0.1 million
of principal and interest payable under an outstanding convertible note issued by the Company, before paying estimated expenses.
The Securities Purchase Agreement contained customary representations and warranties of the