Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 104

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 104
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.4% of the total number of outstanding shares of Channel common stock and approximately 38.1% of the total number of outstanding shares of Channel common stock held by non-affiliates of Channel, in each case as of May 2, 2025.

Sales of a substantial number of shares of Channel common stock in the public market by Tikkun and/or by Channel’s other existing stockholders, or the perception that those sales might occur, could depress the market price of shares of Channel common stock and could impair its ability to raise capital through the sale of additional equity securities.**

**Investors who buy shares of Channel common stock at different times will likely pay different prices.**

**Pursuant to the CEF Purchase Agreement, Channel will have discretion, subject to market demand, to vary the timing, prices, and numbers of Purchase Shares sold to Tikkun. If and when Channel does elect to sell Purchase Shares to Tikkun under the CEF Purchase Agreement, after Tikkun has acquired such shares, Tikkun may resell all or a portion of such shares at any time or from time to time in its discretion and at different prices. As a result, investors who purchase shares of Channel common stock from Tikkun at different times will likely pay different prices for those shares and so may experience different levels of dilution and in some cases substantial dilution and different outcomes in their investment results. Investors may experience a decline in the value of the shares they purchase from Tikkun as a result of future sales made by Channel to Tikkun at prices lower than the prices such investors paid for their shares.

Channel may require additional financing to sustain its operations and, without it, Channel will not be able to continue operations.

The extent to which Channel relies on Tikkun as a source of funding will depend on a number of factors, including the prevailing market price of Channel common stock and the extent to which Channel is able to secure working capital from other sources. If obtaining sufficient funding from Tikkun were to prove unavailable or prohibitively dilutive, Channel may need to secure another source of funding in order to satisfy its working capital needs. Even if it was to sell to Tikkun all of the shares of Channel common stock available for sale to Tikkun under the CEF Purchase Agreement, Channel will still need additional capital to fully implement its business plan. Should the financing it requires to sustain its working capital needs be unavailable or prohibitively expensive when Channel requires it, the consequences would be a material