Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 279

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 279
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| • | the number of shares of Channel common stock needed to reserve for issuance upon exercise and conversion of all outstanding warrants and other convertible securities; |

| • | the anticipated impact of the Reverse Stock Split on the combined company’s ability to raise additional financing; and |

| • | prevailing general market and economic conditions. |

The Reverse Stock Split will become effective upon filing of the Reverse Stock Split Charter Amendment with the Secretary of State of the State of Nevada. The Reverse Stock Split Charter Amendment filed thereby will set forth the number of shares of Channel common stock immediately prior to the Reverse Stock Split to be combined into one share of Channel common stock, within the limits set forth above. Except for adjustments that may result from the treatment of fractional shares as described below, each holder of shares of Channel common stock will hold the same percentage of outstanding shares of Channel common stock immediately following the Reverse Stock Split as such stockholder holds immediately prior to the Reverse Stock Split. The form of Reverse Stock Split Charter Amendment, pursuant to which the Reverse Stock Split would be effected, is attached to this information statement as Annex K. The text of the form of Reverse Stock Split Charter Amendment accompanying this information statement is, however, subject to amendment to reflect the exact ratio for the Reverse Stock Split and any changes that may be required by the office of the Secretary of State of the State of Nevada or that the Channel board of directors may determine to be necessary or advisable ultimately to comply with applicable law and to effect the Reverse Stock Split. The Channel board of directors will retain the authority not to effect the Reverse Stock Split even though it has already obtained the approval of the Majority Stockholders. Reverse Stock Split Effective Date Unless the Channel board of directors determines otherwise, the Reverse Stock Split will become effective, as of 5:00 p.m. Eastern Time on the date of filing of the Reverse Stock Split Charter Amendment (the “Reverse Stock Split Effective Date”). Except as explained below with respect to fractional shares, the issued and outstanding shares of Channel common stock immediately prior to the Reverse Stock Split Effective Date will automatically be converted, as of the Reverse Stock Split Effective Date, into a lesser number of shares of Channel common stock calculated in accordance with a split ratio of between 1-for five and 1-for-twenty-five, as selected by the Channel board of directors and set forth in the certificate of amendment. Purposes of the Reverse Stock Split The primary purpose for the Reverse Stock Split is based on the Channel board of directors’ belief that the Reverse Stock Split will be necessary if NYSE American