Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 434

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 434
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 activities without additional financial support, as assessed immediately prior to the Merger. Finally, Channel will own 100% of the shares of LNHC following the close of the Merger and will therefore be the primary beneficiary of the LNHC business. As a result, Channel will be deemed to be the accounting acquirer in the Merger, and the Merger will be accounted for as a business combination in which Channel acquires the LNHC business. The LNHC assets acquired, and liabilities assumed in connection with the Merger will be recorded at their acquisition date fair values. Under the acquisition method of accounting for purposes of these unaudited pro forma condensed combined financial statements, management has determined a preliminary estimated purchase price, calculated as described in Note 3. A final determination of these estimated fair values will be based on the actual net assets of LNHC that exist as of the date of completion of the Merger, and the accounting for the acquisition and determination of estimated fair values will be finalized within one year from the completion of the Merger.

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PIPE Financing

The PIPE Investors have agreed to subscribe for and purchase an aggregate of 50,100 of shares of Series A Preferred Stock, at a price per share equal to the Purchase Price, subject to adjustment as set forth in the Purchase Agreement, by and among Channel, LNHC and certain investors, which includes Nomis Bay and Ligand. 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 (reduced by amounts previously funded by the Ligand Bridge Loan and PIPE Investors Bridge Loan as further defined and discussed below), 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 Purchase Agreement), as well as certain other conditions. A copy of the Purchase Agreement is attached as Annex B to this information statement and incorporated by reference into this notice.

LNHC

Ligand did not account for LNHC, and it was not operated as, an independent, publicly traded company for the periods presented. The unaudited pro forma financial information does not reflect amounts for autonomous entity adjustments as management does not anticipate that the impacts from the separation of LNHC from Ligand and other commercial arrangements between Ligand and LNHC will be materially different from the historical amounts previously allocated from Ligand to LNHC as presented