Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 446

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 446
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 a result of changes in the fair value per share of Channel Series A Preferred Stock, the timing of the closing of the Merger, and other changes in LNHC assets and liabilities that occur prior to the completion of the Merger. The unaudited pro forma condensed combined financial statements, including the notes thereto, should be read in conjunction with the separate Channel and LNHC historical financial statements included elsewhere or incorporated by reference in this information statement. Note 2 – Accounting Policies and Reclassifications During the preparation of the unaudited pro forma condensed combined financial statements, Channel performed a preliminary analysis to identify differences in LNHC’s and Channel’s historical financial statement presentation and significant accounting policies. Based on its initial analysis, Channel did not identify any differences in accounting policies that would have a material impact on the unaudited pro forma condensed combined financial information. No reclassification adjustments have been made to conform LNHC’s historical financial statement captions to Channel’s financial statement captions in the unaudited pro forma condensed combined financial statements. Following the completion of the Merger, or as more information becomes available, Channel will finalize its comprehensive review of financial statement presentation and accounting policies. Therefore, the pro forma financial information may not reflect all reclassifications necessary to conform LNHC’s presentation to that of Channel due to limitations on the availability of information as of the date of this information statement. Accounting policy differences and reclassification adjustments may be identified as more information becomes available. Note 3 – Estimated Merger Consideration and Preliminary Purchase Price Allocation Estimated Merger Consideration The fair value of the merger consideration to be transferred upon completion of the Merger will include the fair value of Channel Series A Preferred Stock to be issued to the holder of LNHC common stock pursuant to the Merger Agreement. The following table summarizes the components of the estimated preliminary merger consideration (in thousands, except share and per share amounts):

| Estimated shares of Series A Preferred Stock to be issued in the Merger(a) |     |  31,254 |
| Estimated Channel Series A Preferred Stock per share price(b)              |     |    $970 |
| Estimated total merger consideration                                       |     | $30,316 |

| (b) | As the Channel Series A Preferred Stock is immediately convertible into Channel common stock at a ratio of 1 to 1,000, the fair value estimate of the Channel Series A Preferred Stock is calculated as the closing Channel common stock price on May 23, 2025 multiplied by 1,000. |

The estimated total merger