Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 1

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 1
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 with LNHC surviving as a wholly owned subsidiary of Channel, and the surviving corporation of the merger, which transaction is referred to herein as the “Merger”. A copy of the Merger Agreement is attached as Annex A to the accompanying information statement and incorporated by reference into this notice.

Immediately prior to the effective time of the Merger (the “Effective Time”), each share of LNHC capital stock will be converted into the right to receive a number of shares of Series A Convertible Preferred Stock, par value $0.0001 per share (the “Channel Series A Preferred Stock”), of Channel equal to the exchange ratio described in more detail in the section titled “ The Merger-Exchange Ratio ” beginning on page 125 of this information statement. The exchange ratio represents the number of shares of Channel common stock issuable upon conversion of the Channel Series A Preferred Stock that will be received for each LNHC share outstanding in the Merger and is based on a stipulated value for Channel of $15 million (excluding the PIPE Financing (as defined below)) and for LNHC of $67 million. Based on Channel’s and LNHC’s capitalization as of May 2, 2025, Ligand Pharmaceuticals, Inc., a Delaware corporation (“Ligand”) is expected to receive an aggregate of approximately 31,599.44 shares of Channel Series A Preferred Stock in the Merger. This amount is an estimate only and the final number of shares Ligand will receive at closing will be determined pursuant to a formula described in more detail in the Merger Agreement.

Certain investors (the “PIPE Investors”) have agreed to subscribe for and purchase an aggregate of approximately 50,100 of shares of Channel Series A Preferred Stock, at a price per share equal to $1,000 (the “Purchase Price”), subject to adjustment as set forth in the securities purchase agreement, by and among Channel, LNHC and certain investors, which includes Nomis Bay Ltd (“Nomis Bay”) and Ligand (the “Purchase Agreement” and together with the Merger Agreement, the “Transaction Agreements”; such transaction, the “PIPE Financing” and together with the Merger, the “Transactions”). The PIPE Financing is expected to close immediately prior to the closing of the Merger. Each share of Channel Series A Preferred Stock is initially convertible into 1,000 shares of Channel common stock. The gross proceeds from the PIPE Financing are expected to be approximately $50.1 million, consisting of approximately $50.0 million in cash and the conversion of