Company: PTHS
Filing Date: 2025-04-17
Form Type: 8-K
Source: 0001753926-25-000652
Chunk: 1

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-04-17
Form: 8-K
Item: Item 1.01
Chunk 1
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 the LNHC allocation percentage based on the relative valuations of $67 million for LNHC
and $15 million for Channel) by the total number of LNHC shares outstanding.

Based on current capitalization, upon the closing
of the Merger, after giving effect to the PIPE Financing (as defined below), on a pro forma basis and based upon the number of shares
of Common Stock expected to be issued in the Merger, Channel securityholders as of immediately prior to the Merger are expected to own
approximately 7.7% of the outstanding shares of capital stock of Channel, Ligand, including its participation in the PIPE Financing,
is expected to own approximately 55.1% of the outstanding shares of capital stock of Channel, and the other PIPE Investors (as defined
below) are expected to own approximately 37.2% of the outstanding shares of capital stock of Channel, in each case, on a fully-diluted
basis, calculated using the treasury stock method, subject to certain assumptions, including, but not limited to, a valuation for LNHC
equal to $67 million and a valuation for Channel equal to $15 million, in each case as further described in the Merger Agreement. For
purposes of calculating the Exchange Ratio, shares of Common Stock underlying Channel stock options outstanding as of immediately prior
to the closing of the Merger with an exercise price of less than the volume weighted average closing trading price of a share of Common
Stock on The NYSE American LLC (the “ NYSE American”) for the five consecutive trading days ending five trading days
immediately prior to the closing of the Merger will be deemed to be outstanding, and, such shares will be calculated using the treasury
stock method.

Each of Channel and LNHC has agreed to
customary representations, warranties and covenants in the Merger Agreement, including, among others, covenants relating to (i)
obtaining the requisite approvals of their respective stockholders, (ii) non-solicitation of alternative acquisition proposals,
(iii) the conduct of their respective businesses during the period between the date of signing the Merger Agreement and the closing
of the Merger and (iv) Channel using its commercially reasonable efforts to maintain the existing listing of the Common Stock on
the NYSE American and Channel causing the shares of Common Stock issuable upon conversion of the Series A Preferred Stock to be
issued in connection with the Merger to be approved for listing on the NYSE American at or prior