Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 186

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 186
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 2024, together with a draft term sheet (the “Term Sheet”) to Mr. Knuettel. The draft Term Sheet outlined the terms on which Ligand would be willing to proceed with a transaction in which: (1) Channel would acquire LNHC in exchange for an issuance of Channel stock to Ligand, and (2) Ligand would provide equity financing to fund the combined company’s continuing operations and the commercialization of ZELSUVMI, (3) Channel and LNHC could concurrently raise incremental equity financing from third parties, including Murchinson Ltd., a Toronto based investment firm (“Murchinson”), and (4) Ligand and certain other equity financing sources would receive a royalty on sales of ZELSUVMI and other products in Channel’s pipeline.

On November 13, 2024, the Channel board of directors held a meeting attended by Channel’s senior management team and Sullivan & Worcester LLP (“Sullivan”) as outside counsel to Channel, to discuss the Term Sheet received from Ligand. After consultation with its outside counsel, including regarding its fiduciary duties in considering proposals for a possible acquisition and appropriate approaches to identify and manage potential conflicts of interest, the Channel Board decided to form the Special Committee consisting of Ezra Friedberg, Richard Malamut and Chia Lin Simmons and delegated authority to the Special Committee to (a) establish, approve, modify, monitor and direct the process and procedures related to the review, evaluation and negotiation of the Transactions; (b) review and make such investigation of the Transactions as the Special Committee deems appropriate; (c) evaluate the terms and conditions of the Transactions; (d) contact and negotiate with Ligand or its representatives regarding any element of the Transactions, including the Transactions structure, price, terms and conditions (including the terms and conditions of any definitive agreements with respect to the Transactions); (e) contact and negotiate with third parties

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and their representatives (including potential investors, lenders and other parties) regarding any element of the Transactions; (f) in the event the Transactions involved stock consideration, investigate the appropriate relative valuations of Channel, Ligand or any other third party, as applicable; (g) to the extent the Special Committee deems it appropriate, report to the full Channel board of directors its recommendations and conclusions with respect to the Transactions, including a recommendation and determination as to whether the Transactions are advisable and in the best interests of Channel and Channel stockholders and should be approved or rejected