Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 181

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 2
Chunk 181
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Recent Sales of Unregistered Securities

In
conjunction with the consummation of the Merger, the Company closed the PIPE Financing pursuant to the Securities Purchase Agreement
executed concurrently with the Merger Agreement, by and among the Company, and the PIPE Investors. At the closing of the PIPE Financing,
which occurred immediately prior to the Effective Time, the Company issued an aggregate of 50,100 shares of Series A Preferred
Stock to the PIPE Investors for gross proceeds of approximately $50.1 million, consisting of approximately $50.0 million in cash
and the conversion of approximately $0.1 million of principal and interest under an outstanding convertible note.

Each
share of Series A Preferred Stock is convertible into shares Common Stock, subject to certain beneficial ownership limitations,
including a 49.9% cap for Ligand and a 4.99% cap for other PIPE Investors. Immediately following the PIPE Financing, certain PIPE
Investors converted 23,810 shares of Series A Preferred Stock into an aggregate of 2,381,000 shares of Common Stock (after giving
effect to the Reverse Stock Split).

68

The
Securities Purchase Agreement also provides the PIPE Investors with customary rights, including participation rights in future
financings, anti-dilution protections, and registration rights pursuant to a Registration Rights Agreement entered into on the
Merger Closing Date. The Company is obligated to file a resale registration statement with the SEC covering the shares of Common Stock
issuable upon conversion of the Series A Preferred Stock.

The
offers and sales of the above securities were deemed to be exempt from registration under the Securities Act in reliance upon Section
4(a)(2) of the Securities Act or Regulation D promulgated thereunder, or Rule 701 promulgated under Section 3(b) of the Securities
Act, as transactions by an issuer not involving any public offering or pursuant to benefit plans and contracts relating to compensation
as provided under Rule 701. The recipients of the above securities represented their intentions to acquire the securities for investment
only and not with a view to or for sale in connection with any distribution thereof.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

        Exhibit
        Number
     
    Description

    3.1
     
    Certificate of Amendment to Articles of Incorporation, filed with the Secretary of State of the State of Nevada