Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 109

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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.0001 per share equal to (i) $1,000, subject to adjustment, plus any all declared and unpaid dividends thereon as
of such date of determination, plus any other amounts owed to such holder pursuant to the Certificate of Designations, divided
by (ii) $1 (adjusted to $10 as a result of the ten-for-one Reverse Stock Split), subject to adjustments.

In
general, a holder of shares of Series A Preferred Stock may not convert any portion of Series A Preferred Stock if the holder,
together with its affiliates, would beneficially own the Maximum Percentage, of the number of shares of the Company’s Common
Stock outstanding immediately after giving effect to such exercise, provided, however, that a holder may increase or decrease
the Maximum Percentage by giving 61 days’ notice to the Company, but not to any percentage in excess of 9.99%.

The
shares of Series A Preferred Stock to be issued and sold to the PIPE Investors were not registered under the Securities Act and
were issued and sold in reliance on the exemption from registration requirements thereof provided by Section 4(a)(2) of
the Securities Act as a transaction by an issuer not involving a public offering.

The
closing of the PIPE Financing occurred on July 1, 2025, immediately prior to the consummation of the Merger.

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On
July 1, 2025, certain PIPE Investors entered into Series A Convertible Preferred Stockholder Side Letters with the Company, pursuant
to which, immediately after the closing of the PIPE Financing on July 1, 2025, the PIPE Investors converted 23,810 shares of Series
A Preferred Stock not exceeding such PIPE Investors’ Maximum Percentage into an aggregate of 2,381,000 shares of the Company’s
Common Stock (after giving effect to the Reverse Stock Split), by providing the Company with a completed and signed Conversion
Notice under the Certificate of Designation.

Registration
Rights Agreement

On
the Closing Date and in connection with the Merger, the Company and the PIPE Investors entered into a registration rights agreement
(the “Registration Rights Agreement”) pursuant to which the PIPE Investors are entitled to certain resale registration
rights with respect to shares of the Company’s Common Stock issuable upon conversion of the Series A Preferred Stock issued
to the PIPE Investors. Pursuant to the Registration Rights Agreement, the Company is required to prepare and file a resale
registration statement with the SEC on or prior to the later of