Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 438

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 438
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 No reclassification adjustments have been made to conform LNHC’s historical financial statement captions to Channel’s financial statement captions in the unaudited pro forma condensed combined financial statements. Following the completion of the Merger, or as more information becomes available, Channel will finalize its comprehensive review of financial statement presentation and accounting policies. Therefore, the pro forma financial information may not reflect all reclassifications necessary to conform LNHC’s presentation to that of Channel due to limitations on the availability of information as of the date of this information statement. Accounting policy differences and reclassification adjustments may be identified as more information becomes available. Note 3 – Estimated Merger Consideration and Preliminary Purchase Price Allocation Estimated Merger Consideration The fair value of the merger consideration to be transferred upon completion of the Merger will include the fair value of Channel Series A Preferred Stock to be issued to the holder of LNHC common stock pursuant to the Merger Agreement. The following table summarizes the components of the estimated preliminary merger consideration (in thousands, except share and per share amounts):

| Estimated shares of Series A Preferred Stock to be issued in the Merger(a) |     | 31,599.44 |
| Estimated Channel Series A Preferred Stock per share price(b)              |     |    $1,260 |
| Estimated total merger consideration                                       |     |   $39,815 |

| (b) | As the Channel Series A Preferred Stock is immediately convertible into Channel common stock at a ratio of 1 to 1,000, the fair value estimate of the Channel Series A Preferred Stock is calculated as the closing Channel common stock price on May 2, 2025 multiplied by 1,000. |

The estimated total merger consideration at closing may change materially from the amount shown above due to multiple factors including, but not limited to, changes in the number of shares of Channel Series A Preferred Stock to be issued and changes in the estimated fair value of the Channel Series A Preferred Stock, based on the closing stock price of Channel common stock. Accordingly, the estimated total merger consideration could differ from the amount calculated above, and that difference may be material.

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The following table shows the effect of changes in Channel’s common stock fair value and the resulting impact on the estimated total merger consideration (in thousands, except preferred stock price):

|              |     | Channel Series A 
  Preferred Stock 
  per share price |     | Estimated total 
          merger 
   consideration |
| As presented |     |           $1,260 |