Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 2

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 2
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 expenses. The funding of the cash Purchase Price by Ligand, Nomis Bay and one other investor will be offset by the repayment of certain bridge loans issued by such investors to LNHC. The closing of the PIPE Financing is conditioned upon all conditions to the closing of the Merger being satisfied or waived, the Merger being set to occur substantially concurrently with the PIPE Financing, entry into the Royalty Agreements (as defined in the Purchase Agreement), as well as certain other conditions. A copy of the Purchase Agreement is attached as Annex B to the accompanying information statement and incorporated by reference into this notice.

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Additionally, immediately following the Transactions, the Channel securityholders as of immediately prior to the Merger are expected to hold approximately 7.9% of the shares of combined company capital stock, Ligand, including its participation in the PIPE Financing, is expected to hold approximately 55.7% of the shares of combined company capital stock, and the other PIPE Investors are expected to hold approximately 36.3% of the shares of combined company capital stock, in each case, on a fully diluted basis, subject to certain assumptions.

Shares of Channel common stock are currently listed on The NYSE American LLC (“the NYSE American”) under the symbol “CHRO”. On April 16, 2025, the last trading day before the announcement of the Transactions, the closing sale price of Channel common stock was $1.255 per share. On May 23, 2025, the last trading day before the date of the accompanying information statement, the closing sale price of Channel common stock was $0.97 per share. Channel intends to file a listing application for the combined company with The NYSE American. After completion of the Merger, the combined company will be renamed “Pelthos Therapeutics Inc.” and, assuming approval of the listing application, the common stock of the combined company will trade on The NYSE American under the symbol “PTHS”. However, The NYSE American’s determination of the combined company’s listing status is not known as of the date of this information statement.

The Transaction Agreements and the Transactions were unanimously approved and determined to be advisable, fair to and in the best interests of Channel and Channel stockholders, by the Channel board of directors upon unanimous recommendation of an independent special committee of the Channel board of directors (the “Special Committee” and, such recommendation, the “Special Committee Recommendation”) — a committee comprised solely of