Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 17

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 17
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, the Merger being set to occur substantially concurrently with the PIPE Financing, entry into the Royalty Agreements, as well as certain other conditions. Immediately following the Transactions, the Channel securityholders as of immediately prior to the Merger are expected to hold approximately 8.0% of the shares of combined company capital stock, Ligand, including its participation in the PIPE Financing, is expected to hold approximately 55.9% of the shares of combined company capital stock, and the other PIPE Investors are expected to hold approximately 36.2% of the shares of combined company capital stock, in each case, on a fully diluted basis, subject to certain assumptions. Treatment of Channel Common Stock and Channel Equity Awards Each share of Channel common stock that is issued and outstanding at the Effective Time will remain issued and outstanding and will be unaffected by the Merger. Each option to purchase Channel common stock and Channel restricted stock unit award that is outstanding immediately prior to the Effective Time will remain outstanding and will be unaffected by the Merger. Non-Solicitation The Merger Agreement contains “non-solicitation” provisions, pursuant to which, subject to specified exceptions, each of Channel and LNHC has agreed that neither it nor its subsidiaries will, and each of Channel and LNHC will cause its respective directors, officers, employees, and consultants not to, and will instruct their respective attorneys, and financial advisors not to, directly or indirectly:

| • | solicit, seek, encourage, induce or initiate or knowingly take any action to facilitate or encourage any offers, inquiries or the making of any proposal or offer that constitutes, or would reasonably be expected to lead to, any Acquisition Proposal or Acquisition Inquiry (as defined in the section of this information statement titled “The Merger Agreement-Non-Solicitation”); |

| • | enter into, continue or otherwise participate or engage in any discussions or negotiations regarding any Acquisition Proposal or Acquisition Inquiry (as defined in the section of this information statement titled “The Merger Agreement-Non-Solicitation”), or furnish to any person any non-public information or afford any person other than Channel or LNHC, as applicable, access to such party’s property, books or records (except pursuant to a request by a governmental entity) in connection with any offers, inquiries or the making of any proposal or offer that constitutes, or would reasonably be expected to lead to, any Acquisition Proposal; |

| • | take any action to make the provisions of any “fair price”, “business combination” or “control share acquisition” statute