Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 198

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 198
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 of the Transaction Agreements and the consummation of the Transactions, upon the terms and subject to the conditions set forth therein and (d) recommended the adoption and approval of the Transaction Agreements and the consummation of the Transactions by the stockholders of Channel. The Channel board of directors considered and relied upon the analyses and the unanimous Special Committee Recommendation as set forth in the section entitled “ The Merger — Recommendation of the Special Committee; Channel’s Reasons for the Merger” beginning on page 107in arriving at this determination and recommendation. In considering the Special Committee’s analyses and the Special Committee Recommendation, the Channel board of directors reviewed and discussed information with respect to Channel’s, LNHC’s and Ligand’s financial condition, results of operations, competitive position and business strategy, as well as current industry, economic and market conditions and trends. The material factors that supported the Channel board of directors’ determination and recommendation, in addition to the Special Committee Recommendation, are those set forth in the section entitled “ The Merger — Recommendation of the Special Committee; Channel’s Reasons for the Merger” beginning on page 107. LNHC’s Reasons for the Merger The following discussion sets forth material factors considered by the LNHC board of directors in reaching its determination to authorize the Merger Agreement and approve the Merger. However, it may not include all of the factors considered by the LNHC board of directors. In light of the number and wide variety of factors considered in connection with its evaluation of the Merger Agreement and the Merger, the LNHC board of directors did not consider it practicable to, and did not attempt to, quantify or otherwise assign relative weights to the specific factors it considered in reaching its determination. The LNHC board of directors viewed its position and determinations as being based on all of the information available and the factors presented to and considered by it. In the course of reaching its determination, the LNHC board of directors considered a number of factors, including, but not limited to, the following (which factors are not necessarily presented in order of relative importance):

| • | that the Merger will provide LNHC’s current stockholder with greater liquidity by owning publicly-traded stock; |

| • | the potential increased access to sources of capital and a broader range of investors to support the commercialization of ZELSUVMI following consummation of the Merger compared to if LNHC continued to operate as a subsidiary of Ligand; |

| • | that the PIPE Financing will generate additional liquidity to fund the