Company: PTHS
Filing Date: 2025-08-28
Form Type: S-3
Source: 0001753926-25-001403
Chunk: 65

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-28
Form: S-3
Chunk 65
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 shares
of the Company’s Series A Preferred Stock as consideration for the LNHC shares (the “Merger Consideration Shares”).

On April 16, 2025, the Company entered
into the Securities Purchase Agreement, pursuant to which, among other things, on July 1, 2025, the date of the consummation of
the transaction contemplated by the Securities Purchase Agreement (the “PIPE Closing Date”) and immediately prior to
the consummation of the Merger, the Selling Stockholders purchased (either for cash or in exchange for the conversion of principal
and interest payable under an outstanding convertible note issued by the Company), and the Company issued and sold to the Selling
Stockholders (the “PIPE Investors”), an aggregate of 50,100 shares of the Company’s Series A Preferred Stock
at a price per share equal to $1,000 (such transaction, the “PIPE Financing”). The gross proceeds from the PIPE Financing
were approximately $50.1 million, consisting of approximately $50.0 million in cash and the conversion of approximately $0.1 million
of principal and interest payable under an outstanding convertible note issued by the Company, before paying estimated expenses.
The Securities Purchase Agreement contained customary representations and warranties of the Company and LNHC, on the one hand,
and the Selling Stockholders, on the other hand, and customary conditions to closing.

On July 1, 2025, in connection with the
closing of the Merger, the Company, LNHC and the Selling Stockholders entered into Amendment No. 1 to Securities Purchase Agreement,
pursuant to which, the Company, LNHC and the Selling Stockholders consented to the inclusion of two additional Selling Stockholders
in the PIPE Financing and a corresponding decrease in the amount of certain Selling Stockholders’ investments in the PIPE
Financing such that the aggregate amount of the PIPE Financing would remain unchanged (the “Securities Purchase Agreement
Amendment”).

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 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