Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 191

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 191
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, Sullivan, Ligand, Latham, Murchinson and Kelly Drye continued to exchange drafts and negotiate the terms and conditions of the Merger Agreement, Purchase Agreement and ancillary agreements relating to the Transactions. During this process, the material open points in the Merger Agreement and Purchase Agreement that were negotiated included, among other things: (1) the circumstances in which Ligand would be willing to provide representations and warranties that would survive the consummation of the Transactions; (2) the total quantum of transaction expenses that each party would be authorized to incur; (3) acceptable transaction sources & uses of equity financing; (4) termination rights; (5) the terms and conditions with respect to conversion of Series A Preferred Stock into Common Stock; and (6) obligations and risk allocation with respect to stockholder approvals and SEC filings.

On March 11, 2025, M&N Sarchet sent Mr. Knuettel the financial analyses used to prepare the Fairness Opinion. On March 13, 2025, M&N Sarchet sent Mr. Knuettel the final Fairness Opinion for review by the Special Committee and the Channel board of directors.

On March 14, 2025, Mr. Plesha and Mr. Knuettel discussed LNHC’s underlying sales forecasts, sales process and management and developing a sales and finance dashboard for management support of the surviving corporation in the Merger.

On March 17, 2025, representatives of Latham, on behalf of Ligand, provided responses to Channel’s due diligence requests regarding LNHC’s operations and granted representatives of Channel and Sullivan access to the virtual data room containing certain confidential information regarding LNHC. Following the exchange of initial due diligence requests and materials, the parties continued to exchange supplemental due diligence requests and responsive diligence information regarding LNHC’s operations.

On March 19, 2025, representatives of Channel, Sullivan, Ligand, Latham, Murchinson and Kelly Drye met via teleconference to discuss material open issues in the Transaction Agreements, including those noted above. During the following week, Mr. Baxter, Mr. Bistricer and Mr. Knuettel continued to discuss potential terms to resolve the above-described open issues, as well as potential financing structures (including bridge financing) that could enable LNHC to fund the launch of ZELSUVMI prior to the closing of the Transactions.

Between March 19, 2025 and March 22, 2025, Mr. Baxter spoke