Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 38

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 38
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ger the market price of Channel common stock declines from the market price on the date of the Merger Agreement, then Ligand could receive merger consideration with substantially lower value. The Merger Agreement does not include a price-based termination right.

Failure to complete the Merger may result in harm to the common stock price of Channel and future business and operations of either Channel or LNHC.

If the Merger is not completed, the price of Channel common stock may decline and could fluctuate significantly.

If the Merger Agreement is terminated and the Channel board of directors or the LNHC board of directors determines to seek another business combination, there can be no assurance that either Channel or LNHC will be able to find a partner with whom a business combination would yield greater benefits than the benefits to be provided under the Merger Agreement.**

**If the conditions to the Merger are not satisfied or waived, the Merger may not occur.**

The completion of the Merger is not assured. The conditions to the completion of the Merger are set forth in the Merger Agreement and described in the section titled “ The Merger Agreement-Conditions to the Completion of the Merger ” beginning on page 139 of this information statement. Channel and LNHC cannot assure you that all of the

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**conditions to the consummation of the Merger will be satisfied or waived. If the conditions are not satisfied or waived, the Merger may not occur or the closing may be delayed, and Channel and LNHC each may lose some or all of the intended benefits of the Merger.

Certain conditions to LNHC’s or Channel’s obligations to complete the Merger may be waived by the LNHC and Channel, and in the event such waiver is determined not to require approval of its stockholders, Channel will have discretion to complete the Merger without seeking further stockholder approval, which decision may have a material adverse effect on Channel stockholders.

LNHC or Channel may waive one or more of the conditions to the Merger without re-soliciting stockholder approval.

Certain conditions to LNHC’s or Channel’s obligations to complete the Merger may be waived, in whole or in part, to the extent permitted by law, either unilaterally or by agreement of LNHC and Channel. In the event of a waiver of a condition, the Channel board of directors will evaluate the materiality of any such waiver to determine whether stockholder approval or amendment of this information statement is necessary.

In