Company: PTHS
Filing Date: 2025-04-17
Form Type: 8-K
Source: 0001753926-25-000652
Chunk: 6

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-04-17
Form: 8-K
Item: Item 1.01
Chunk 6
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 Series A Preferred
Stock to be issued in connection with the PIPE Financing pursuant to the terms of the Merger Agreement and the Securities Purchase
Agreement, (vi) amend the articles of incorporation of Channel to change the name of Channel to “ Pelthos Therapeutics Inc.”,
(vii) authorize, adopt and approve an amended and restated Channel Therapeutics Corporation 2023 Equity Incentive Plan, (viii)
approve, if necessary, a grant of discretionary authority to the board of directors of Channel (the “ Board”) to, without
further stockholder approval, effect a reverse stock split of Channel’s and outstanding Common Stock within a range of between
1-for-5 and 1-for-25 (the “ Reverse Stock Split”) by filing an amendment to Channel’s articles of incorporation,
as amended, with the Secretary of State of the State of Nevada, with the final determination of whether to proceed, the effective
time, and the exact ratio of the Reverse Stock Split to be determined by the Board ((i) through (viii) are collectively referred
to herein as the “ Proposals”). Each of the Proposals was approved by Channel stockholders owning an aggregate of 3,996,296
shares of Common Stock, which represents 65.47% of the total issued and outstanding shares of Common Stock as of April 16, 2025.

Certificate of Designations

The following description of the principal
terms of the Series A Preferred Stock, which are set forth in a Certificate of Designations.

General. Pursuant to the
Series A Certificate of Designations, the Company will authorize 150,000 shares of Series A Preferred Stock and each share of Series
A Preferred Stock shall have a stated value of $1,000 per share. At the consummation of the PIPE Financing, we will issue 50,100 shares
of our Series A Preferred Stock. When issued, the Series A Preferred Stock will be fully paid and non-assessable.

Dividends. The holders of Series
A Preferred Stock will be entitled to dividends, on an as-if converted basis, equal to and in the same form as dividends actually
paid on shares of Common Stock, when and if actually paid.

Conversion at Option of Holder. Each
holder of Series A Preferred Stock may convert all, or any part, of the outstanding Series A Preferred Stock, at any time at such
holder’s option, into shares of our Common Stock at the fixed “ Conversion Price” of $1