Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 229

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 229
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) the aggregate valuation; |

| • | “LNHC merger shares” means the product determined by multiplying (i) the post-closing Channel shares by (ii) the LNHC allocation percentage; |

| • | “LNHC outstanding shares” means the total number of shares of LNHC capital stock outstanding immediately prior to the Effective Time expressed on a fully-diluted and as-converted to LNHC common stock basis calculated using the treasury stock method; |

| • | “LNHC valuation” means $67,000,000; and |

| • | “Post-closing Channel shares” mean the quotient determined by dividing (i) the Channel outstanding shares by (ii) the Channel allocation percentage. |

Procedures for Exchanging LNHC Stock Certificates At the Effective Time, Channel will deposit with Nevada Agency and Transfer Company or another bank or trust company designated by Channel and reasonably acceptable to LNHC, as the exchange agent, (i) certificates representing the shares of Channel Series A Preferred Stock issuable pursuant to the terms of the Merger Agreement in exchange for shares of LNHC capital stock, and (ii) cash payable in lieu of fractional shares of Channel Series A Preferred Stock otherwise issuable pursuant to the terms of the Merger Agreement. After the Effective Time, each certificate representing LNHC common stock that has not been surrendered will represent only the right to receive shares of Channel Series A Preferred Stock issuable pursuant to the Merger Agreement to which the holder of any such certificate is entitled. Effective Time of the Merger The Merger Agreement requires the parties to consummate the Merger no later than two business days following the satisfaction or (to the extent permitted by law) wavier of the conditions to the consummation of the Merger contained in the Merger Agreement, other than those conditions that by their nature are to be satisfied at the closing of the Merger, unless another date or time is agreed to in writing by Channel and LNHC. The Merger will become effective upon the filing of a certificate of merger with the Secretary of State of the State of Delaware or at such later time as is agreed by Channel and LNHC and specified in the certificate of merger. Neither Channel nor LNHC can predict the exact timing of the consummation of the Merger. Regulatory Approvals In the United States, Channel must comply with applicable federal and state securities laws and the rules and regulations of The NYSE American in connection with the issuance of shares of Channel Series A Preferred Stock to Ligand in connection with the transactions contemplated