Company: PTHS
Filing Date: 2025-09-29
Form Type: 424B3
Source: 0001753926-25-001561
Chunk: 62

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-09-29
Form: 424B3
Chunk 62
---
”) with the Company, pursuant to which, immediately after the closing of the PIPE Financing on July 1, 2025, the Selling Stockholders converted 23,810 shares of Series A Preferred Stock not exceeding such Selling Stockholders’ Maximum Percentage into an aggregate of 2,381,000 shares of the Company’s Common Stock (after giving effect to the Reverse Stock Split), by providing the Company with a completed and signed Conversion Notice under the Certificate of Designation.

<div align='center'>36

JULY 2025 MERGER TRANSACTION</div>

The Merger

On the Merger Closing date, we consummated
the previously announced merger transaction contemplated by the Merger Agreement, by and among Channel, Merger Sub, LNHC, and solely
for the purposes of Article III thereof, Ligand. Pursuant to the Merger Agreement, (i) Merger Sub merged with and into LNHC, with
LNHC as the surviving company in the merger and, after giving effect to such merger, continuing as a wholly-owned subsidiary of
the Company and (ii) Channel’s name was changed from Channel Therapeutics 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.

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