Company: PTHS
Filing Date: 2025-04-17
Form Type: 8-K
Source: 0001753926-25-000652
Chunk: 7

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-04-17
Form: 8-K
Item: Item 1.01
Chunk 7
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.00, which is subject to
proportional adjustment upon the occurrence of any stock split, stock dividend, stock combination and/or similar transactions.

Voluntary Adjustment Right. Subject
to the rules and regulations of the NYSE American, we have the right, at any time, with the written consent of certain holders
of the Series A Preferred Stock, to lower the fixed conversion price to any amount and for any period of time deemed appropriate
by our board of directors.

Purchase Rights. If at any time
the Company grants, issues or sells any options, convertible securities, or rights to purchase stock, warrants, securities or other
property pro rata to all or substantially all of the record holders of any class of Common Stock (the “ Purchase Rights”),
then each holder of Series A Preferred Stock will be entitled to acquire, upon the terms applicable to such Purchase Rights, the
aggregate Purchase Rights which such holder could have acquired if such holder had held the number of shares of Common Stock acquirable
upon complete conversion of all the Series A Preferred Stock held by such holder immediately prior to the date as of which the
record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights; subject to
certain limitations on beneficial ownership.

Voting Rights. The holders of the
Series A Preferred Stock shall have the right to vote together with the holders of Common Stock, as a single class, in an amount
equal to the voting power of such aggregate number of shares of Common Stock then issuable upon conversion of such shares of Series
A Preferred Stock, subject to certain limitations on beneficial ownership (or as otherwise required by applicable law).

The preceding summaries of the Merger Agreement,
the Securities Purchase Agreement, the Lock-Up Agreements, the Certificate of Designations, the form of Registration Rights Agreement,
the Nomis Bay Bridge Note, and the Funding Side Letter do not purport to be complete and are qualified in their entirety by reference
to the Merger Agreement, the Securities Purchase Agreement, the forms of Lock-Up Agreements, the form of Certificate of Designations,
the form of Registration Rights Agreement, the Nomis Bay Bridge Note, and the Funding Side Letter which are filed as Exhibits 2.1,
10.1, 10.2, 10.3, 10.4, 10.5, 3.1, 10.6, 10.7 and 10.8 respectively, to this Current Report on Form