Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 232

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 232
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ibility of capital losses is subject to limitations. Ligand would generally have an aggregate tax basis in any Channel Series A Preferred Stock received in the Merger that is equal to the fair market value of such LNHC capital stock as of the Effective Time, and the holding period of such Channel Series A Preferred Stock would begin on the day following the Merger.

#### Anticipated Accounting Treatment
The Merger is expected to be accounted for as a business combination using the acquisition method of accounting under the provisions of FASB ASC 805. Channel and LNHC are each expected to meet the definition of a business as defined by ASC 805 by virtue of having inputs, processes and outputs. In addition, LNHC is expected

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#### TABLE OF CONTENTS
to meet the definition of a variable interest entity (“VIE”) given the entity will not have sufficient equity to finance its activities without additional financial support, as assessed immediately prior to the Merger. Finally, Channel will own 100% of the shares of LNHC following the close of the Merger and will therefore be the primary beneficiary of LNHC business. As a result, Channel will be deemed to be the accounting acquirer in the Merger, and the Merger will be accounted for as a business combination in which Channel acquires the LNHC business. The LNHC assets acquired, and liabilities assumed in connection with the Merger will be recorded at their acquisition date fair values.

See the section titled “ Unaudited Pro Forma Condensed Combined Financial Information ” elsewhere in this information statement for additional information.

**Written Consent of Holders of Channel Common Stock**

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. In accordance with Section 78.320 of the NRS, following execution of the Merger Agreement, Channel 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 of the total issued and outstanding Channel common stock, executed and delivered to Channel the Written Consent, approving and adopting the Transaction Agreements, the Transactions,