Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 170

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 170
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| • | if the combined company fails to raise an adequate amount of capital to fund its operations and continued development of its product candidates; |

| • | trading volume of the combined company common stock; |

| • | publicity or announcements by competitors of new commercial products, clinical progress or lack thereof, significant contracts, commercial relationships or capital commitments; |

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| • | the impact of any natural disasters or public health emergencies; |

| • | the introduction of technological innovations or new product candidates that compete with the products and services of the combined company; |

| • | changes in accounting standards, policies, guidelines, interpretations or principles; and |

| • | period-to-period fluctuations in the combined company’s financial results. |

Moreover, the stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of individual companies. These broad market fluctuations may also adversely affect the trading price of the combined company common stock. In addition, macroeconomic conditions, a recession, depression or other sustained adverse market event resulting from the spread of diseases or otherwise could materially and adversely affect the combined company’s business and the value of its common stock. In the past, following periods of volatility in the market price of a company’s securities, stockholders have often instituted class action securities litigation against such companies. Furthermore, market volatility may lead to increased stockholder activism if the combined company experiences a market valuation that activists believe is not reflective of its intrinsic value. Activist campaigns that contest or conflict with the combined company’s strategic direction or seek changes in the composition of its board of directors could have an adverse effect on its operating results and financial condition. Even if the Merger and the PIPE Financing are successful, the combined company will need substantial additional funding to finance its operations and pursue its business objectives, including the commercialization of ZELSUVMI. If the combined company is unable to raise capital when needed, or on acceptable terms, the combined company could be forced to curtail its planned operations and the pursuit of its growth strategy. Developing and commercializing pharmaceutical products is a time-consuming, expensive and uncertain process that takes years to complete. The combined company expects to continue to incur significant expenses over the next several years as it commercializes ZELSUVMI, continues to research, develop and conduct preclinical studies of any product candidates, and begins to operate as a public company. In addition, the combined company anticipates incurring significant commercialization expenses related to product manufacturing, marketing, sales and distribution activities to launch ZELS