Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 212

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 212
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Bio Therapeutics, Inc. Neos Therapeutics, Inc. Cancer Prevention Pharmaceuticals, Inc. Zyla Life Sciences Societal CDMO, Inc. Opiant Pharmaceuticals, Inc. Alimera Sciences, Inc. Adamas Pharmaceuticals, Inc. BioSpecifics Technologies Corp. The same analysis that was performed for the publicly-traded companies was performed for the acquired companies listed above; to wit, M&N Sarchet calculated the final implied MVEq (total consideration to shareholders divided by percent transacted) for each acquired company, from which was calculated implied trailing twelve months multiples of revenue. The first and third quartile revenue multiples of the acquired companies were applied to the forecast LNHC 2027 revenue. M&N Sarchet then applied the same present value factor as determined above to the implied equity values to bring the company implied MVEq to present value (i.e., December 31, 2024).

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The results of this analysis are summarized below:

|              |     | First Quartile |     | Third Quartile |
| Implied MVEq |     | $68.0 million  |     | $233.1 million |

No acquired company in the selected transactions is identical to LNHC. In performing this selected precedent transactions analysis, M&N Sarchet made judgments and assumptions with regard to industry performance, general business, economic, market and financial conditions, and other matters, such as the impact of competition, industry growth and the absence of any adverse material change in the financial condition and prospects of LNHC or the acquired companies or the industry or in the financial markets in general. Discounted Cash Flow Analysis M&N Sarchet used financial forecasts of LNHC, as prepared by the management of LNHC and reflecting the probabilities of technical success determined by the management of LNHC, as directed for M&N Sarchet’s use by Channel management, to perform a discounted cash flow analysis, which analyzes a company’s future cash flow projections by discounting them to arrive at the net present value of these cash flows. M&N Sarchet calculated the debt-free cash flow to equity for the period 2025 through 2032 with a terminal year valuation following this time frame. M&N Sarchet then discounted the debt-free projected cash flows to equity of LNHC at a discount rate range of 29%-31% (based on an analysis of WACCs, using the capital asset pricing model, considering LNHC’s company