Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 193

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 193
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 directors’ determination and recommendation, in addition to the Special Committee Recommendation, are those set forth in the section entitled “ The Merger — Recommendation of the Special Committee; Channel’s Reasons for the Merger” beginning on page 107. Following approval by the Channel board of directors, representatives of Channel and Sullivan proceeded to collect executed Purchase Agreements and Lock-Up Agreements from third parties participating in the PIPE Financing. On the evening of April 16, 2025, representatives of Channel and Sullivan reported to representatives of Ligand, Latham, Murchinson and Kelly Drye that it had collected signatures in escrow to the Purchase Agreements and Lock-Up Agreements from all third parties participating in the PIPE Financing and that Channel was prepared to proceed with execution of the Merger Agreement and other Transaction Agreements. Following such confirmation, Channel, LNHC, and the third parties participating in the PIPE Financing executed the Transaction Agreements. Also on the evening of April 16, 2025, pursuant to the terms of the Merger Agreement, Channel provided LNHC with the Written Consent of Channel stockholders beneficially owning or having sole voting power over 3,996,296 shares of Channel common stock, representing approximately 65.04% of the aggregate voting power of the issued and outstanding shares of Channel common stock, consenting to the adoption of the Transaction Agreements and the Transactions, among other items. On the following day, before the opening of trading on NYSE American, Ligand and Channel issued a press release announcing the execution of the Transaction Agreements. Recommendation of the Special Committee; Channel’s Reasons for the Merger During the course of its evaluation of the Merger Agreement and the transactions contemplated by the Merger Agreement, the Channel board of directors held numerous meetings, consulted with Channel’s senior management, legal counsel and financial advisors, and reviewed and assessed a significant amount of information. On April 11, 2025, the Special Committee unanimously determined that the Transaction Agreements and the Transactions, on the terms and subject to the conditions set forth therein, are advisable, fair to and in the best interests of Channel and Channel stockholders. The Special Committee further (a) recommended that the Merger Agreement and the other transactions contemplated by the Merger Agreement, including the Merger, be approved by the Channel board of directors; (b) recommended that the Purchase Agreement and the other transactions contemplated by the Purchase Agreement, including the PIPE Financing, be approved by the Channel board of directors; and (c) directed M&N S