Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 101

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 101
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 its future earnings, if any, to finance the growth and development of its business. In addition, the terms of any future debt agreements may preclude it from paying dividends. As a result, capital appreciation, if any, of Channel common stock will be your sole source of gain for the foreseeable future. Anti-takeover provisions in Channel’s organizational documents could delay or prevent a change of control. Certain provisions of Channel’s Articles of Incorporation bylaws may have an anti-takeover effect and may delay, defer or prevent a merger, acquisition, tender offer, takeover attempt or other change of control transaction that a stockholder might consider to be in its interests, including attempts that might result in a premium over the market price for the shares held by Channel stockholders. These provisions provide, among other things:

| • | the ability of the Channel board of directors to issue one or more series of preferred stock with voting or other rights or preferences that could have the effect of impeding the success of an attempt to acquire Channel or otherwise effect a change of control; |

| • | advance notice for nominations of directors by stockholders and for stockholders to include matters to be considered at stockholder meetings; and |

| • | certain limitations on convening special stockholder meetings and the prohibition of stockholder action by written consent. |

These anti-takeover provisions, including those noted above, could make it more difficult for a third party to acquire Channel, even if the third party’s offer may be considered beneficial by many of Channel stockholders. As a result, Channel stockholders may be limited in their ability to obtain a premium for their shares. Risks Related to Channel’s CEF Purchase Agreement It is not possible to predict the actual number of Purchase Shares (as defined below) Channel will sell under the CEF Purchase Agreement, or the actual gross proceeds resulting from those sales. Channel may not have access to the full amount available under the CEF Purchase Agreement with Tikkun. On July 26, 2024, Channel entered into the CEF Purchase Agreement with Tikkun Capital LLC (“Tikkun”), pursuant to which Tikkun committed to purchase up to $30.0 million in shares of Channel common stock, subject to certain limitations and conditions set forth in the CEF Purchase Agreement.

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**The shares of Channel common stock that may be issued under the CEF Purchase Agreement (the “Purchase Shares”) may be sold by Channel to Tikkun at Channel’s discretion from time