Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 172

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 172
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 investments in the combined company and may not be willing, able or permitted to make further investments in the combined company. Additional funds may not be available from other sources on a timely basis, on favorable terms, or at all, and such funds, if raised, may not be sufficient to enable the combined company to continue to implement its long-term business strategy. If the combined company is unable to raise sufficient additional capital, it could be forced to curtail its planned operations and the pursuit of its growth strategy. Following the Merger, the combined company’s board of directors may pause the development of all or some of its product candidates based on its cash position. The combined company may not be able to borrow additional capital, including under a proposed debt financing, with acceptable terms or at all. The combined company expects any future indebtedness, including the proposed debt financing, to contain covenants that could limit its operations. LNHC is seeking a venture debt term loan and an accounts receivables credit line, to close substantially concurrently with the closing of the Merger. The intended purpose of the proposed debt financing is to provide additional capital to LNHC for working capital and general corporate purposes. The proposed debt financing will be subject to definitive documentation and customary closing conditions; accordingly, no assurance can be given that the proposed debt financing will be available on terms acceptable to LNHC, including the amount available to be borrowed described above, or at all. The inability to obtain the proposed debt financing would have a material adverse effect on the combined company’s operating results, its ability to raise capital needed to commercialize products and its overall financial condition. Any future indebtedness, including the proposed debt financing, will likely contain financial and operating covenants, including limitations that will restrict the combined company’s ability to incur additional debt and make distributions or other payments to its shareholders, and it may restrict its ability to make investments or engage in transactions with affiliates. These covenants may restrict the combined company’s ability to engage in transactions that it believes would otherwise be in the best interests of its shareholders. If the combined company violates covenants in its future debt agreements, including the proposed debt financing, it could be required to repay all or a portion of its indebtedness before maturity at a time when it might be unable to arrange financing for such repayment on attractive terms, if at all. Raising additional capital may cause dilution to the combined company’s shareholders, restrict its operations or require it to relinquish rights to its product candidates. The combined company may finance its cash needs