Company: PTHS
Filing Date: 2025-08-28
Form Type: S-3
Source: 0001753926-25-001403
Chunk: 67

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-28
Form: S-3
Chunk 67
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 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.

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. There are 3,127,868 shares of Common
Stock (the “Merger Shares”) issuable to Ligand upon conversion of the shares of Series A Preferred Stock that Ligand
owns. 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.

Each share of Series A Preferred Stock
is convertible at any time at the holder’s option into a number of shares of Common Stock equal to (i) $1,000, subject to
adjustment, plus any all declared and unpaid dividends thereon as of such date of determination, plus any other amounts owed to
such holder pursuant to the Certificate of Designations, divided by (ii) $1 (adjusted to $10 as a result of the ten-for-one Reverse
Stock Split), subject to adjustments.

The shares of Series A Preferred Stock
to be issued and sold to the Selling Stockholders were not registered under the Securities Act, and were 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 Registration Rights Agreement

On the Merger Closing Date and in connection
with the Merger, the Company and the PIPE Investors entered into a registration rights agreement (the “Registration Rights
Agreement”) pursuant to which the PIPE Investors are entitled to certain resale registration rights with respect to shares
of the Company’s Common Stock issuable upon conversion of the Series A Preferred Stock issued to the PIPE Investors. Pursuant
to the Registration Rights Agreement, the Company is required to prepare and file a resale registration statement with the SEC
on or prior to the later of (