Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 171

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 171
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 be offered and sold pursuant to the resale prospectus which forms a part of the Registration
Statement.

We
currently do not have strategy and development plans for the Spray Formulations licensed from Benuvia. 

34 

Merger
Transactions

On
July 1, 2025, Channel consummated the previously announced merger transaction contemplated by that certain Merger Agreement, dated
as of April 16, 2025, by and among Channel, CHRO Merger Sub, LNHC, Inc., and solely for the purposes of Article III thereof, Ligand.
Pursuant to the Merger Agreement, (i) Merger Sub merged with and into LNHC, with LNHC as the surviving company in the Merger and,
after giving effect to such Merger, continuing as a wholly-owned subsidiary of the Company, (ii) Channel’s name was changed
from Channel Therapeutics Corporation to Pelthos Therapeutics Inc., and (iii) the Company effected a 10-for-1 Reverse Stock Split
of all outstanding shares of its Common Stock.

The
Common Stock share amounts included in these Notes to the Company’s financials are presented on a post-split basis and reflect
the Reverse Split.

On
July 2, 2025, Pelthos commenced trading on the NYSE American under the ticker symbol ”PTHS”, and Ligand invested
$18 million as part of a broader $50.1 million equity raise, entitling Ligand to a 13% royalty on worldwide net sales of
ZELSUVMI—the FDA-approved topical treatment for molluscum contagiosum. These actions occurred immediately following the
Merger and reflect both the successful closing of the transaction and the initiation of the commercial launch for ZELSUVMI in
July 2025. This material milestone underscores management’s near-term strategic direction.

Securities
Purchase Agreement

Concurrently
with the execution of the Merger Agreement, the Company entered into the Securities Purchase Agreement with LNHC and certain investors,
which includes Ligand (collectively, the “PIPE Investors”), pursuant to which, among other things, on the Closing
Date and immediately prior to the consummation of the Merger, the PIPE Investors purchased (either for cash or in exchange for
the conversion of principal and interest payable under an outstanding convertible note issued by the Company), and the Company
issued and sold to the PIPE Investors, an aggregate of 50,100 shares of the Company’s Series