Company: PTHS
Filing Date: 2025-09-29
Form Type: 424B3
Source: 0001753926-25-001561
Chunk: 61

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-09-29
Form: 424B3
Chunk 61
---
 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), 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 Selling Stockholders (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 61 days’ notice to the Company, but not to any percentage in excess of 9.99%.

The shares of Series A Preferred Stock to be issued and sold to the Selling Stockholders 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 Selling Stockholders entered into Series A Convertible Preferred Stockholder Side Letters (each, a “Side Letter