Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 14

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 14
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 Consent of Holders of Channel Common Stock (page 128and Annex E) Under Section 78.320 of the NRS and the Articles of Incorporation, the adoption of the Transaction Agreements, including the Transactions, required the affirmative vote of the holders of a majority of the voting power of the Channel common stock issued and outstanding. Holders of issued and outstanding shares of Channel preferred stock have no voting rights and could not consent to the adoption of the Transaction Agreements, including the Transactions. Under Section 713 of the NYSE American Guide stockholder approval is required prior to the issuance of securities in connection with a transaction other than a public offering involving (1) the sale, issuance, or potential issuance by the issuer of common stock (or securities convertible into common stock) at a price less than the greater of book or market value which together with sales by officers, directors or principal stockholders of the issuer equals 20% or more of presently outstanding common stock; (2) the sale, issuance, or potential issuance by the issuer of common stock (or securities convertible into common stock) equal to 20% or more of presently outstanding common stock for less than the greater of book or market value of the stock; or (3) the issuance of shares in connection with a transaction when the issuance or potential issuance will result in a change of control of the issuer. As of April 16, 2025, the date the Merger Agreement and the Purchase Agreement were executed, there were 6,143,923 shares of Channel common stock issued and outstanding, 2,600 shares of Channel preferred stock issued and outstanding and 3,671,882 shares reserved for issuance for certain Convertible Securities, as defined in the Purchase Agreement. As of April 16, 2025, the record date for determining stockholders of the Channel entitled to vote on the adoption of the Merger Agreement, there were 6,143,923 shares of Channel common stock outstanding. Holders of Channel common stock are entitled to one vote for each share held of record on all matters on which stockholders are entitled to vote generally, including adoption of the Merger Agreement.

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On April 16, 2025, following the execution of the Transaction Agreements, the Majority Stockholders, who collectively beneficially owned or had sole voting power over 3,996,296 shares of Channel common stock, representing approximately 65.04% of the aggregate voting power of the outstanding Channel common stock entitled to