Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 354

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 354
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 the satisfaction of the conditions contained in the CEF Purchase Agreement, Tikkun has committed to purchase, at Channel’s direction in its sole discretion, up to an aggregate of $30,000,000 (the “Total Commitment”) of the shares of Channel common stock (the “Purchase Shares”), subject to certain limitations set forth in the CEF Purchase Agreement, from time to time during the term of the CEF Purchase Agreement. Concurrently with the execution of the CEF Purchase Agreement, Channel and Tikkun also entered into a Registration Rights Agreement, dated as of July 26, 2024, pursuant to which Channel agreed to file with the SEC one or more registration statements, to register under the Securities Act, the offer and resale by Tikkun of all of the Purchase Shares that may be issued and sold by Channel to Tikkun from time to time under the CEF Purchase Agreement.

On August 5, 2024, the Channel board of directors authorized the Repurchase Plan, pursuant to which up to $250,000 of Channel common stock may be repurchased prior to December 31, 2024, unless completed sooner or otherwise extended. Open market purchases are intended to be conducted in accordance with applicable Securities and Exchange Commission regulations, including the guidelines and conditions of Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The timing and actual number of shares repurchased will depend on a variety of factors including trading price, Channel’s financial performance, corporate and regulatory requirements and other market conditions. On October 22, 2024, the Channel board of directors authorized an amendment to the Repurchase Plan to increase the total value of shares of Channel common stock available for repurchase by Channel under the Repurchase Plan by an additional $500,000, to $750,000.

On February 25, 2025, Channel issued the February Bridge Note in the aggregate principal amount of $325,000 to the Holder, for a purchase price of $250,000, pursuant to which Channel promises to pay the Holder or its registered assigns the principal sum of $325,000 or such amount equal to the outstanding principal amount of the February Bridge Note together with interest. The February Bridge Note bears interest on the outstanding principal amount at an annual rate equal to 6.0%. The February Bridge Note may be prepaid by Channel without penalty, in whole or in part, upon two days’ prior written notice to the Holder. All unpaid