Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 167

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 167
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 U.S. financial markets have in the past contributed to, and may continue in the future to contribute to, increased volatility and diminished expectations for the economy and the markets. Sanctions imposed by the United States and other countries in response to military conflicts, including the wars between Russia and Ukraine and Israel and Hamas, may also adversely impact the financial markets and the global economy, and any economic countermeasures by the affected countries or others could exacerbate market and economic instability. Domestic and international equity markets periodically experience heightened volatility and turmoil. These events may have an adverse effect on LNHC. In the event of a market downturn, LNHC’s results of**

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operations could be adversely affected by those factors in many ways, including making it more difficult for it to raise funds if necessary, and its value may decline. LNHC cannot provide assurance that its investments are not subject to adverse changes in market value. If LNHC’s investments experience adverse changes in market value, LNHC may have less capital to fund its operations.

**LNHC’s business is subject to risks arising from pandemic and epidemic diseases.**

**Future pandemics, including the residual effects of the COVID-19 pandemic, or other public health epidemics, pose the risk that LNHC or its employees, contractors, including its CROs, suppliers, and other partners may be prevented from conducting business activities for an indefinite period of time, including due to spread of the disease within these groups or due to shutdowns that may be requested or mandated by governmental authorities. Although LNHC currently does not believe the COVID-19 pandemic is having a material impact on its business, LNHC cannot guarantee that pandemics, such as COVID-19 or the emergence of variants thereof, or a similar event, will not impact its operations in the future.

Although LNHC believes that it and its partners have adjusted their business practices to the impacts of the COVID-19 pandemic, in the future, LNHC may experience similar pandemics or epidemic diseases that could severely impact its business, drug manufacturing and supply chain, nonclinical activities and clinical trials, including due to delays or difficulties in enrolling patients in clinical trials, diversion of healthcare resources away from the conduct of clinical trials, interruption of, or delays in receiving, supplies of product or product candidates from contract manufacturing organizations due to staffing shortages, production slowdowns or stoppages and disruptions in delivery systems, interruption or delays to discovery and development pipelines and difficulties launching or commercializing products, including due