Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 82

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 82
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 by the Merger Agreement will be paid by the party incurring
such expenses, whether or not the Merger is consummated. Notwithstanding the foregoing, the Company and LNHC will equally share
(i) all fees and expenses of the exchange agent and (ii) all fees and expenses, other than accountants’ and attorneys’
fees, incurred with respect to the printing filing and mailing of an information statement and any amendments or supplements thereto.

Immediately
following the Merger, the board of directors of the combined company will consist of Mr. Scott Plesha, Mr. Peter Greenleaf, Mr.
Matt Pauls, Mr. Todd Davis, Mr. Richard Baxter, Dr. Richard Malamut and Mr. Ezra Friedberg.

Immediately
following the Merger, the executive management team of the combined company is expected to consist of members of the LNHC and
CHRO executive management teams prior to the Merger, including Scott Plesha as Chief Executive Officer and Francis Knuettel II
as Chief Financial Officer.

30

Securities
Purchase Agreement

On
April 16, 2025, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement” and
together with the Merger Agreement, the “Transaction Agreements”) with LNHC, and certain investors, which includes
Nomis Bay Ltd (“Nomis Bay”) and Ligand (collectively, the “PIPE Investors”), pursuant to which the PIPE
Investors have agreed to subscribe for and purchase in cash an aggregate of approximately 50,100 of shares of Series A Preferred
Stock, at a price per share equal to $1,000 (the “Purchase Price”) (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. The gross proceeds from the PIPE Financing are expected to be approximately $50.1 million, which amount
will include the cancellation of any outstanding amounts under certain bridges notes provided by certain of the PIPE Investors,
before paying estimated expenses. The closing of the PIPE Financing is conditioned upon the closing of the Merger, entry into
the Royalty Agreements (as defined in the Securities Purchase Agreement), as well as certain other conditions. The Series A Preferred
Stock and the shares of Common Stock issuable upon conversion of the Series A Preferred Stock issued in the PIPE Financing will
be issued pursuant to an exemption from the registration requirements of the Securities