Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 108

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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 basis, calculated using the treasury stock method.

The
shares of Series A Preferred Stock issued to Ligand in the Merger will not be registered under the Securities Act and will be
issued and sold in reliance on the exemption from registration requirements thereof provided by Section 4(a)(2) of the
Securities Act as a transaction by an issuer not involving a public offering.

The
shares of the Company’s Common Stock listed on the NYSE American LLC, previously trading through the close of business on
July 1, 2025 under the ticker symbol “CHRO,” commenced trading on the NYSE American under the ticker symbol “PTHS,”
on July 2, 2025. The Company’s Common Stock is represented by a new CUSIP number, 171126 204.

PIPE
Financing (Private Placement) and Conversions of Series A Preferred Stock

Concurrently
with the execution of the Merger Agreement, the Company entered into the Securities Purchase Agreement with certain PIPE Investors,
pursuant to which, among other things, on the Closing Date and immediately prior to the consummation of the Merger, the PIPE Investors
purchased (either for cash or in exchange for the conversion of principal and interest payable under an outstanding convertible
note issued by the Company), and the Company issued and sold to the PIPE Investors, an aggregate of 50,100 shares of the Company’s
Series A Preferred Stock, in the PIPE Financing. The gross proceeds from the PIPE Financing were approximately $50.1 million,
consisting of approximately $50.0 million in cash and the conversion of approximately $0.1 million of principal and interest payable
under an outstanding convertible note issued by the Company, before paying estimated expenses. The Securities Purchase Agreement
contained customary representations and warranties of the Company and LNHC, on the one hand, and the PIPE Investors, on the other
hand, and customary conditions to closing.

On
July 1, 2025, the Company, LNHC and the PIPE Investors entered into the Securities Purchase Agreement Amendment, pursuant to which,
the Company, LNHC and the PIPE Investors consented to the inclusion of two additional PIPE Investors in the PIPE Financing and
a corresponding decrease in the amount of certain PIPE Investors’ investments in the PIPE Financing such that the aggregate
amount of the PIPE Financing would remain unchanged.

Each
share of Series A Preferred Stock is convertible at any time at the holder’s option into a number of shares of Common Stock,
par value $0