Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 47

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 47
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 issued immediately prior to the closing of the Merger. The Purchase Agreement may be terminated under certain circumstances, and, if such termination were to occur, the combined company would not receive the proceeds of the PIPE Financing. The Purchase Agreement may be terminated as follows:

| • | automatically if the Merger Agreement is terminated without the Merger being consummated; and |

| • | if any closing conditions set forth thereunder are not met and have not been waived. |

Accordingly, there can be no guarantee that the PIPE Financing will occur. The PIPE Financing is a condition to each party’s obligations to effect the Merger under the Merger Agreement. In the event that the PIPE Financing does not occur, the Merger Agreement may be terminated without the Merger being consummated. For more information, please see the section titled “ Agreements Related to the Merger” beginning on page 145of this information statement. Risks Related to Channel’s Business If the Merger is not completed, Channel will reconsider its strategic alternatives, including dissolving and liquidating its assets, pursuing another strategic transaction, or operating its business. If the Merger is not completed, Channel will face various risks related to its financial condition and need for capital; its ability to execute on alternative strategies; its third party agreements, licenses, and collaborations; its intellectual property; regulatory and compliance matters; and its status as a public company, all as further discussed in the Risk Factors, including this subsection titled “- Risks Related to Channel.” The report of the independent registered public accounting firm on our 2024 and 2023 financial statements contains a going concern qualification. The report of the independent registered public accounting firm covering our consolidated financial statements for the years ended December 31, 2024 and 2023 stated that certain factors, including that Channel has suffered recurring losses from operations and have an accumulated deficit at December 31, 2024, raised substantial doubt as to its ability to continue as a going concern. Because Channel is not yet producing sufficient revenue or cash flow to sustain its operating costs, Channel is dependent upon raising capital to continue its business. If Channel is unable to raise capital, it may be unable to continue as a going concern.

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Channel is a clinical stage biopharmaceutical company with a limited operating history. The operations of Channel, contributed to Channel by Chromocell Corporation (“Chromocell Holdings”), to date have been limited to financing and staffing Channel, developing and licensing compounds, conducting pre