Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 283

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 283
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 of, Channel’s outstanding convertible and exercisable securities. Except for adjustments that may result from the treatment of fractional shares of Channel common stock as described below, because the Reverse Stock Split would apply to all issued shares of Channel common stock, the Reverse Stock Split would not alter the relative rights and preferences of Channel’s existing stockholders nor affect any stockholder’s proportionate equity interest in Channel. For example, a holder of two percent (2%) of the voting power of Channel’s outstanding securities immediately prior to the effectiveness of the Reverse Stock Split will generally continue to hold two percent (2%) of the voting power of Channel’s outstanding securities immediately after the Reverse Stock Split. Moreover, the number of stockholders of record of shares of Channel common stock will not be affected by the Reverse Stock Split. The amendment to the articles of incorporation itself to solely effect the Reverse Stock Split would not change the number of authorized shares of Channel common stock or the par value of Channel common stock. The Reverse Stock Split will have the effect of creating additional unreserved shares of authorized Channel common stock. Although at present Channel has no current arrangements or understandings providing for the issuance of the additional shares of Channel common stock that would be made available for issuance upon effectiveness of the Reverse Stock Split (other than pursuant to the terms of the Transaction Agreements and the transactions contemplated thereby and the terms of anti-dilution features in Channel’s outstanding securities), these additional shares of Channel common stock may be used by Channel for various purposes in the future without further stockholder approval, including, among other things:

| • | raising capital to fund Channel’s operations and to continue as a going concern; |

| • | establishing strategic relationships with other companies; |

| • | providing equity incentives to Channel’s employees, officers or directors; and |

| • | expanding Channel’s business or product lines through the acquisition of other businesses or products. |

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While the Reverse Stock Split will make additional shares of Channel common stock available for Channel to use in connection with the foregoing, the primary purpose of the Reverse Stock Split is to comply with The NYSE American listing requirements in the event such requirements are not satisfied.

Effect on Amended and Restated 2023 Plan, RSAs, RSUs and Convertible or Exchangeable Securities. Pursuant to the terms of the Amended and Restated 2023 Plan, the Channel board of directors or a committee thereof, as applicable, will adjust the number of shares of Channel common stock available for future grant under the Am