Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 80

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 80
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 basis and based upon the number of shares of Common Stock expected to be issued in the Merger, the Company securityholders
as of immediately prior to the Merger are expected to own approximately 8.0% of the outstanding shares of capital stock of the
Company, Ligand, including its participation in the PIPE Financing, is expected to own approximately 55.9% of the outstanding
shares of capital stock of the Company, and the other PIPE Investors (as defined below) are expected to own approximately 36.2%
of the outstanding shares  of capital stock of the Company, 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 the Company 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 the Company 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.

29

Each
of the Company 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) the Company using its commercially reasonable efforts to maintain
the existing listing of the Common Stock on the NYSE American and the Company 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 to the Effective Time.

The
consummation of the Merger is subject to certain closing conditions, including, among other things, (i) the Merger Agreement having
been approved by means of written consents by the requisite stockholders of LNHC and the Company, (