Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 280

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 280
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 OF CONTENTS
requires a listed company to apply for an initial listing application when the company combines with an unlisted entity, resulting in a change of control of the company. The Channel board of directors believes that the Reverse Stock Split could also improve the marketability and liquidity of the Channel common stock.

Obtain initial listing on The NYSE American. Shares of Channel common stock are currently traded on The NYSE American. As described in this information statement, Channel has entered into a Merger Agreement with Merger Sub, LNHC and solely for the purposes of Article III thereof, Ligand. If The NYSE American determines that the Merger will result in a change of control of Channel under The NYSE American Rules once the Merger is consummated, pursuant to Section 341 of the NYSE American Guide, the Reverse Stock Split will be needed in order to allow Channel to pursue a listing of the Channel common stock on The NYSE American. Channel believes that the Reverse Stock Split is Channel’s best option to meet the criteria generally required to obtain an initial listing, as The NYSE American requires, among other criteria, a minimum market price of at least $3.00 per share (or, if certain other conditions are met, which may not apply to us, an initial bid price of $2.00 per share). Following an initial listing, The NYSE American also requires that a listed company maintain a bid price of at least $1.00 per share. A decrease in the number of outstanding shares of Channel common stock resulting from the Reverse Stock Split should, absent other factors, increase the per share market price of Channel common stock, although Channel cannot provide any assurance that the minimum bid price of the Channel common stock would remain over the minimum bid price requirement following the Reverse Stock Split and until such time that Channel submits its initial listing application.

Improve the marketability and liquidity of Channel common stock. Channel also believes that the increased market price of shares of Channel common stock expected as a result of implementing the Reverse Stock Split will improve the marketability and liquidity of Channel common stock and will encourage interest and trading in Channel common stock. The Reverse Stock Split could allow a broader range of institutions to invest in Channel common stock (namely, funds that are prohibited from buying stocks whose price is below a certain threshold), potentially increasing the liquidity of Channel common stock. The Reverse Stock Split could also help increase analyst and broker interest in Channel common stock as their policies can discourage them from following or recommending companies with low stock prices. Because of the