Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 433

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 433
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 for such periods on a pro forma basis as if the Merger and PIPE Financing had been consummated on January 1, 2024, the beginning of the earliest period presented.

Assumptions and estimates underlying the unaudited pro forma adjustments included in the unaudited pro forma condensed combined financial statements are described in the accompanying notes. The unaudited pro forma adjustments are based on available preliminary information and certain assumptions that Channel believes are reasonable under the circumstances. The unaudited pro forma condensed combined financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results and financial position that would have been achieved had the Merger and PIPE Financing occurred on the dates indicated. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors.

The Merger, PIPE Financing and other significant transactions are each described in detail below.

The Merger

On April 16, 2025, Channel, Merger Sub, LNHC, and solely for the purposes of Article III thereof, Ligand, entered into the Merger Agreement, pursuant to which, among other things, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into LNHC, with LNHC continuing as a wholly owned subsidiary of Channel and the surviving corporation of the Merger. A copy of the Merger Agreement is attached as Annex A to this information statement and incorporated by reference into this notice.

Subject to the terms and conditions of the Merger Agreement, at the closing of the Merger, each then outstanding share of LNHC capital stock will be converted into the right to receive a number of shares of Channel Series A Preferred Stock (subject to the payment of cash in lieu of fractional shares) calculated in accordance with the exchange ratio set forth in the Merger Agreement. Based on Channel’s and LNHC’s capitalization as of May 2, 2025, Ligand is expected to receive an aggregate of approximately 31,599.44 shares of Channel Series A Preferred Stock in the Merger.

The Merger is expected to be accounted for as a business combination using the acquisition method of accounting under the provisions ASC 805. Channel and LNHC are each expected to meet the definition of a business as defined by ASC 805 by virtue of having inputs, processes and outputs. In addition, LNHC is expected to meet the definition of a VIE given the entity will not have sufficient equity to finance its