Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 183

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 183
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 the combined company’s decisions on how to use the net proceeds from the PIPE Financing (if completed).**

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TABLE OF CONTENTS

The concentrated ownership of the combined company’s common stock will prevent you and other stockholders from influencing significant decisions. Immediately following the consummation of the Transactions, Ligand will own 49.9% of the voting power of the combined company’s outstanding capital stock. As long as Ligand beneficially controls a substantial portion of the voting power of the combined company’s outstanding capital stock, it may influence the outcome of such corporate actions requiring stockholder approval, including the election and removal of directors. If Ligand continues to hold its shares of Channel Series A Preferred Stock and/or common stock, it could retain this influence for an extended period of time or indefinitely. The management of and beneficial ownership in Ligand by the combined company’s executive officers and directors may create, or may create the appearance of, conflicts of interest. The management of and beneficial ownership in Ligand by the combined company’s executive officers and directors may create, or may create the appearance of, conflicts of interest. For example, Todd Davis, a director on the combined company’s Board, is Chief Executive Officer and a director of Ligand. Management and ownership by the combined company’s executive officers and directors in Ligand may create, or may create the appearance of, conflicts of interest when these individuals are faced with decisions that could have different implications for Ligand than such decisions have for the combined company, including decisions that relate to its License Agreement and Master Services Agreement (“MSA”), each dated March 24, 2025, with LNHC, as well as potential future agreements. Any perceived conflicts of interest resulting from investors questioning the independence of the combined company’s management or the integrity of corporate governance procedures may materially affect its stock price. The License Agreement and MSA were prepared while Ligand owned 100% of LNHC’s common stock. Accordingly, at the time this agreement was prepared LNHC did not have a separate or independent board of directors or a management team that was independent of Ligand. As a result, the terms of those agreements may not reflect terms that would have resulted from arm’s-length negotiations between unaffiliated third parties. Any disputes that arise between the combined company and Ligand with respect to its past and ongoing relationships could harm its business operations. Disputes may arise between Ligand and the combined company in a number of areas relating to its past and ongoing relationships, including