Company: PTHS
Filing Date: 2025-04-17
Form Type: 8-K
Source: 0001753926-25-000652
Chunk: 0

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-04-17
Form: 8-K
Item: Item 1.01
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Item 1.01. Entry into a Material Definitive Agreement

Merger Agreement

On April 16, 2025, Channel Therapeutics
Corporation, a Nevada corporation (“ Channel”), CHRO Merger Sub Inc., a Delaware corporation and wholly owned
subsidiary of Channel (the “ Merger Sub”), and LNHC, Inc., a Delaware corporation (“ LNHC”),
and solely for the purposes of Article III thereof, Ligand Pharmaceuticals Incorporated, a Delaware corporation and the parent
of LNHC (“ Ligand”) entered into an Agreement and Plan of Merger (the “ Merger Agreement”),
pursuant to which, among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement,
Merger Sub will merge with and into LNHC, with LNHC continuing as a wholly-owned subsidiary of Channel and the surviving corporation
of the merger (the “ Merger”). The Merger is intended to qualify for federal income tax purposes as a tax-free
reorganization under the provisions of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “ Code”),
or, in the event that the former stockholders of LNHC and certain other persons are in “control” of Channel immediately
after the Merger (within the meaning of Section 368(c) of the Code), the Merger is also intended to qualify as a non-taxable exchange
of shares of LNHC capital stock for Channel common stock, par value $0.0001 per share (the “ Common Stock”),
within the meaning of Section 351(a) of the Code.

Subject to the terms and conditions of
the Merger Agreement, at the effective time of the Merger (the “ Effective Time”), each then outstanding share
of LNHC capital stock will be converted into the right to receive a number of shares of Series A Convertible Preferred Stock, par
value $0.0001 per share (the “ Series A Preferred Stock”) of Channel (subject to the payment of cash in lieu
of fractional shares) calculated in accordance with the Merger Agreement (the ratio of such conversion, the “ Exchange
Ratio”). The Exchange Ratio represents the number of shares of Common Stock issuable upon conversion of the Series A Preferred Stock that will be received for each
LNHC share outstanding immediately prior to the Merger. It is calculated by dividing the shares of Common Stock (derived from the
post-closing shares of Common Stock and