Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 4

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 4
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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.

Because Channel expects to issue approximately 315.99 shares of Channel Series A Preferred Stock to Ligand in accordance with the terms and subject to the conditions of the Merger Agreement, and approximately 50,100 of shares of Channel Series A Preferred Stock to the PIPE Investors in accordance with the terms and subject to the conditions of the Purchase Agreement, Channel will issue more than 20% of both the voting power and the number

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of shares of Channel common stock outstanding before such issuance. Further, the closing price of Channel’s common stock on April 16, 2025, which immediately preceded the signing of the Merger Agreement and the Purchase Agreement, was $1.255 per share, and the average closing price of Channel’s common stock for the five trading days immediately preceding the signing of the Merger Agreement and the Purchase Agreement was $1.311 per share. Because the price at which Channel will issue the shares of Channel Series A Preferred Stock to PIPE Investors in accordance with the terms and subject to the conditions of the Purchase Agreement is $1.00 per share, which is lower than $1.255 per share, the stockholder approval of Channel is required pursuant to Section 713(b) of the NYSE American Guide.

On April 11, 2025, the Channel board of directors adopted a resolution approving an amendment to the articles of incorporation of Channel to change the name of the corporation from “Channel Therapeutics Corporation” to “Pelthos Therapeutics Inc.” upon the consummation of the Transactions (the “Name Change Charter Amendment”). Stockholder approval of the Name Change Charter Amendment is required pursuant to Section 78.390 of the Nevada Revised Statutes (the “NRS”), which requires stockholder approval with respect to