Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 30

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 Corporation to Pelthos Therapeutics Inc. 

Following
the completion of the Merger, the business conducted by the Company became primarily the business conducted by LNHC, which is
a is a biopharmaceutical company committed to commercializing innovative, safe, and efficacious therapeutic products to help patients
with unmet treatment burdens.

    21 

At
the effective time of the Merger (the “Effective Time”), the Company issued an aggregate of approximately 31,279 shares
of Series A Preferred Stock to Ligand, based on the exchange ratio set forth in the Merger Agreement, resulting in approximately
57,569 shares of the Company’s Series A Preferred Stock being issued and outstanding immediately following the Effective
Time. Immediately following the Merger, the Company’s securityholders as of immediately prior to the Merger owned approximately
7.9% of the outstanding shares of the Company and LNHC securityholders owned approximately 55.8% of the outstanding shares
of the Company, in each case on a fully diluted basis, calculated using the treasury stock method.

The
shares of Series A Preferred Stock issued to Ligand in the Merger will not be registered under the Securities Act and will be
issued and sold in reliance on the exemption from registration requirements thereof provided by Section 4(a)(2) of the
Securities Act as a transaction by an issuer not involving a public offering.

The
shares of the Company’s Common Stock listed on the NYSE American LLC, previously trading through the close of business on
July 1, 2025 under the ticker symbol “CHRO,” commenced trading on the NYSE American under the ticker symbol “PTHS,”
on July 2, 2025. The Company’s Common Stock is represented by a new CUSIP number, 171126 204.

PIPE
Financing (Private Placement) and Conversions of Series A Preferred Stock

Concurrently
with the execution of the Merger Agreement, the Company entered into the Securities Purchase Agreement with certain PIPE Investors,
pursuant to which, among other things, on the Closing Date and immediately prior to the consummation of the Merger, the PIPE Investors
purchased (either for cash or in exchange for the conversion of principal and interest payable under an outstanding convertible
note issued by the Company), and the Company issued and sold to the PIPE Investors, an aggregate of 50,100 shares of the Company’s
Series A Preferred Stock, in the PIPE Financing.