Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 180

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 180
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 to the Merger, there had been no public market for shares of LNHC common stock. An active trading market for the combined company’s shares of common stock may never develop or be sustained. If an active market for the combined company common stock does not develop or is not sustained, it may be difficult for its stockholders to sell their shares at an attractive price or at all.**

**Future sales of shares by existing stockholders could cause the combined company’s stock price to decline.**

**If existing securityholders of Channel and Ligand sell, or indicate an intention to sell, substantial amounts of the combined company common stock in the public market after legal restrictions on resale discussed in this information statement lapse, the trading price of the common stock of the combined company could decline. Based on shares outstanding as of May 2, 2025 and, the shares of Channel Series A Preferred Stock expected to be issued upon completion of the Transactions, the combined company is expected to have outstanding a total of approximately 7,074,501 shares of common stock and 81,699.44 shares preferred stock immediately following the completion of the Merger, and after giving effect to the PIPE Financing. All of the shares of Channel common stock, will become available for sale in the public market beginning on December 31, 2025, subject to certain exceptions, as a result of the expiration of lock-up agreements between Channel on the one hand and certain securityholders of Channel and Ligand on the other hand. All other outstanding shares of common stock, other than shares held by affiliates of the combined company, will be freely tradable, without restriction, in the public market. If these shares are sold, the trading price of the combined company common stock could decline.

After completion of the Merger, the combined company’s executive officers, directors and principal stockholders will have the ability to control or significantly influence all matters submitted to the combined company’s stockholders for approval.

Upon the completion of the Merger, and without giving effect to the PIPE Financing, it is anticipated that the combined company’s executive officers, directors and principal stockholders will, in the aggregate, beneficially own approximately 86.5% of the combined company’s outstanding shares of capital stock, on a fully diluted basis, subject to certain assumptions, including, but not limited to, (a) a valuation for Channel equal to $15 million, and (b) a valuation for LNHC equal to $67 million, in each case as further described in the Merger Agreement. As