Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 245

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 245
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 or offer received pursuant to the terms of or in connection with the PIPE Financing shall be an Acquisition Proposal. Notwithstanding the restrictions described above or anything to the contrary set forth in the Merger Agreement, subject to compliance with the terms of the Merger Agreement, before the earliest to occur of: the Effective Time, the applicable party obtaining the approval of its respective stockholders required to consummate the Merger, or the termination of the Merger Agreement, each of Channel and LNHC, and their respective representatives may (A) furnish non-public information with respect to Channel and its subsidiaries or LNHC, as the case may be, to any Qualified Person (and the representatives of such Qualified Person), or (B) engage in discussions or negotiations (including solicitation of revised Acquisition Proposal) with any Qualified Person (and the representatives of such Qualified Person) regarding any bona fide, unsolicited written Acquisition Proposal which such party’s board of directors determines in good faith, after consultation with such party’s financial advisors and outside legal counsel, constitute a Superior Proposal (and is not withdrawn), provided:

| • | that such party receives from the Qualified Person an executed confidentiality agreement containing terms not less restrictive than those contained in the confidentiality agreement between Channel and LNHC; |

| • | that such party has not materially breached the non-solicitation provisions of the Merger Agreement; and |

| • | that such party’s board of directors has determined in good faith, after consultation with outside legal counsel, that the failure to take such actions would reasonably be expected to be inconsistent with the fiduciary duties of such board of directors under applicable law. |

“Qualified Person” means any person making a bona fide, unsolicited written Acquisition Proposal that the Channel Board or the LNHC Board, as the case may be, determines in good faith (after consultation with outside counsel and its financial advisors) is, or would reasonably be expected to lead to, a Superior Proposal, and such Acquisition Proposal has not resulted from a material breach by Channel or LNHC, as the case may be, of its obligations under Merger Agreement. A “Superior Proposal” means, with respect to Channel or LNHC, any bona fide, unsolicited written Acquisition Proposal (replacing all references in such definition to 15% with 50%), (a) on terms which the board of directors of such party determines in its good faith judgment to be more favorable to the holders of such party’s capital stock from a financial point of view than the transactions contemplated by the Mer