Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1405

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1405
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 Company.

Standby
Investor Side letter

On
October 11, 2023, the Company entered into a securities purchase agreement with an institutional investor (the “Standby
Investor”), pursuant to which (i) the Standby Investor agreed to purchase, upon close of the IPO and at the Company’s
election, an aggregate of up to 750 shares of Series B Convertible Preferred Stock, par value of $0.0001 per share
(the “Series B Preferred Stock”) for a purchase price of $1,000 per share, and (ii) in consideration therefor,
the Company would issue upon close of the IPO, and regardless of whether the Company would have issued any shares of Series B
Preferred Stock, an aggregate of 4,167 shares (such shares, the “Standby Shares”) of Common Stock to the Standby Investor
(such agreement, the “Series B Securities Purchase Agreement”). In addition, pursuant to the Series B Securities Purchase
Agreement, the Company was required to file a registration statement within 180 calendar days after consummation of the IPO, providing
for the resale of the Standby Shares and shares of Common Stock issuable upon conversion of the Series B Preferred Stock, if issued.

Effective
November 13, 2023, the Company entered into a side letter with the Standby Investor (the “Standby Investor Side Letter”),
pursuant to which it (i) waived in full the Standby Investor’s obligation to fund the aggregate amount to be paid for the
Series B Preferred Stock to be purchased under the Series B Securities Purchase Agreement and (ii) agreed to continue to have
the obligation to issue the full amount of the Standby Shares upon the closing of the IPO. The Company and the Standby Investor
also agreed to terminate each of their obligations solely with respect to the Series B Preferred Stock under the Series B Securities
Purchase Agreement and a certain Registration Rights Agreement between the Company and the Standby Investor, which was required
to be delivered pursuant to the Series B Securities Purchase Agreement.

    F-20 

Rights
Offering

On
November 22, 2023, the Company commenced a rights offering (the “Rights Offering”) pursuant to which the Company
distributed non-transferable subscription rights (“Subscription Rights”) to each holder of its Common Stock held as
of 5:00 p.m. Eastern Standard Time on November 22, 2023, the record date for the Rights