Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 199

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 199
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 combined company; |

| • | the historical and current information concerning LNHC’s business, financial condition, operations and prospects, including financial projections of LNHC under various scenarios and its short- and long-term strategic objectives, and the risks associated with continuing to operate LNHC as a private company and a subsidiary of Ligand, particularly in light of the need to raise additional capital to fund the commercialization of ZELSUVMI; |

| • | that by removing ZELSUVMI from Ligand, the combined company can use its equity-based compensation more effectively to attract and retain talent and encourage employees to commercialize ZELSUVMI because equity performance will be more aligned with that business; |

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| • | the belief of the LNHC board of directors, after a thorough review of strategic alternatives, that the Merger has a better return on investment for LNHC’s sole stockholder than the potential value that might have resulted from other strategic alternatives available to LNHC, including continuing to operate LNHC as a wholly-owned subsidiary of Ligand; |

| • | the determination that the expected relative percentage ownership of Channel’s stockholders and LNHC’s stockholder in the combined organization was appropriate, based on the LNHC board of directors’ judgment and assessment of the approximate valuations of Channel and LNHC; |

| • | the LNHC board of director’s review of LNHC’s current commercialization plans for ZELSUVMI, to confirm the likelihood that the combined company would possess sufficient resources or have access to sufficient resources to allow the management team to focus on its plan for the commercialization of ZELSUVMI; |

| • | that Ligand and two other investors in the PIPE Financing provided LNHC with bridge loans in aggregate amount of up to $24 million to fund the commercialization of ZELSUVMI while the Merger is pending and that two other investors that provided a bridge loan also agreed to negotiate an incremental $12 million of bridge loan funding (to be offset against their funding commitments in the PIPE) if the parties mutually determine that LNHC requires more than $24 million in funding before the closing; |

| • | the LNHC board of director’s consideration of the approximately $12 million expected cash balance of the combined company upon completion of the Merger resulting from the PIPE Investment and repayment of the Ligand Bridge Loan and the PIPE Investor Bridge Loan (subject to certain assumptions); |

| • | the LNHC board of directors’ view that the combined company will be led by an experienced