Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 17

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 to the Series B Preferred Stock under the Series B Securities
Purchase Agreement and a certain Registration Rights Agreement between the Company and the Standby Investor, which was required
to be delivered pursuant to the Series B Securities Purchase Agreement.

Rights
Offering

On
November 22, 2023, the Company commenced a rights offering (the “Rights Offering”) pursuant to which the Company
distributed non-transferable subscription rights (“Subscription Rights”) to each holder of its Common Stock held as
of 5:00 p.m. Eastern Standard Time on November 22, 2023, the record date for the Rights Offering (the “Rights Offering Record
Date”). The Subscription Rights could be exercised at any time during the subscription period, which commenced on November
22, 2023 and expired at 5:00 p.m., Eastern Standard Time, on December 1, 2023. Each Subscription Right entitled the eligible holder
to purchase up to three shares of the Company’s Common Stock at a price per whole share of Common Stock of $0.1008 (the
“Subscription Price”). Holders who fully exercised their rights could also subscribe for additional shares of Common
Stock not subscribed for by other holders on a pro rata basis. In addition, the Company could distribute to one or more additional
persons, at no charge to such person, additional non-transferable subscription rights to purchase shares of its Common Stock in
the Rights Offering at the same Subscription Price, without notice to the holders of its Common Stock. Upon the closing of the
Rights Offering, the Company issued an aggregate of 2,533,853 shares of Common Stock and received aggregate net proceeds
of $255,412, after giving effect to (i) the amendments to the senior secured convertible notes issued to such affiliates of the A.G.P. (the "Representative") in April 2023 for an aggregate principal amount of $393,808  (the "April Bridge Financing") and amendment to the senior secured convertible notes issued to such affiliates of the Representative in September 2023 for an aggregate principal amount of $198,128  (the "September Bridge Financing") to remove the automatic conversion features from such notes and (i) the Stock Rescission Agreement (as defined below) with certain affiliates of the Representative (collectively, the "Representative Affiliate Transactions"), which it intended to use primarily for general corporate purposes and expenses associated with the IPO.

Stock Recission
Agreement

On
February 10,