Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 203

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 203
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 information and assistance in connection with its consideration of the financial terms of the Merger. The Fairness Opinion addressed only the fairness, from a financial perspective, to Channel of Merger Partner Valuation used to calculate to the exchange ratio pursuant to the Merger Agreement. It did not address the underlying business decision of the Channel board of directors or Channel to proceed with or effect the Merger or constitute a recommendation to the Channel board of directors in connection with the Merger or any other matter, and it does not constitute a recommendation to any stockholder of Channel or any stockholder of any other entity as to how to vote in connection with the Merger or as to any other action that a stockholder should take with respect to the Merger. At the direction of Channel and without independent verification, M&N Sarchet relied upon and assumed that, pursuant to the terms of the draft Merger Agreement that it had reviewed, each share of Merger Sub common stock, par value $0.001 par value per share, issued and outstanding immediately prior to the Effective Time will be converted into and become one fully paid and nonassessable share of LNHC common stock. Each share of LNHC common stock, other than shares to be cancelled and any dissenting shares, issued and outstanding immediately prior to the Effective Time will be automatically converted into the right to receive a number of shares of Channel common stock equal to the exchange ratio. As of the Effective Time, all such shares of LNHC common stock will cease to be outstanding and shall automatically be cancelled and will cease to exist, and each holder of a certificate or non-certificated book entry representing any such shares of LNHC common stock will cease to have any rights with respect thereto, except the right to receive the shares of Channel common stock and any cash in lieu of fractional shares of Channel common stock. M&N Sarchet referred to the terms and conditions of the Merger as set forth in the Merger Agreement. M&N Sarchet also acknowledged their understanding that LNHC owns the FDA approved product ZELSUVMI, approved for the treatment of Molluscum contagiosum(molluscum) in adults and pediatric patients one year of age and older. For purposes of the Fairness Opinion, M&N Sarchet made such reviews, analyses and inquiries as M&N Sarchet deemed necessary and appropriate under the circumstances. Among other things, M&N Sarchet:

| (i) | reviewed certain publicly available financial statements and other