Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 70

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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 Company, LNHC and the PIPE Investors entered into Amendment No. 1 to Securities Purchase Agreement, pursuant
to which, the Company, LNHC and the PIPE Investors consented to the inclusion of two additional PIPE Investors in the PIPE Financing
and a corresponding decrease in the amount of certain PIPE Investors’ investments in the PIPE Financing such that the aggregate
amount of the PIPE Financing would remain unchanged (the “Securities Purchase Agreement Amendment”).

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Each
share of Series A Preferred Stock is convertible at any time at the holder’s option into a number of shares of Common Stock,
par value $0.0001 per share equal to (i) $1,000, subject to adjustment, plus any all declared and unpaid dividends thereon as
of such date of determination, plus any other amounts owed to such holder pursuant to the Certificate of Designations of Rights
and Preferences of Series A Convertible Preferred Stock (the “Certificate of Designations”), divided by (ii) $1 (adjusted
to $10 as a result of the ten-for-one Reverse Stock Split), subject to adjustments.

In
general, a holder of shares of Series A Preferred Stock may not convert any portion of Series A Preferred Stock if the holder,
together with its affiliates, would beneficially own more than 49.9% in the case of Ligand or 4.99%, in the case of the other
PIPE Investors (the “Maximum Percentage”), of the number of shares of the Company’s Common Stock outstanding
immediately after giving effect to such exercise, provided, however, that a holder may increase or decrease the Maximum Percentage
by giving P0Y0M61D days’ notice to the Company, but not to any percentage in excess of 9.99%.

The
shares of Series A Preferred Stock issued and sold to the PIPE Investors were not registered under the Securities Act and were
issued and sold in reliance on the exemption from registration requirements thereof provided by Section 4(a)(2) of the Securities
Act as a transaction by an issuer not involving a public offering.

The
closing of the PIPE Financing occurred on July 1, 2025, immediately prior to the consummation of the Merger.

On July 1, 2025, certain PIPE Investors
entered into Series A Convertible Preferred Stockholder Side Letters (each, a “Side Letter”) with the Company, pursuant
to which, immediately after the closing of the PIPE Financing on July 1, 2025, the PIPE Investors