Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 195

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 195
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 aggregate to which LNHC was willing to agree; |

| • | the Special Committee’s review with Channel management of LNHC’s current commercialization plans for its lead asset, 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 commercialization of ZELSUVMI, including the possibility that the combined company would be able to take advantage of being a public company to raise additional funds in the future; |

| • | the Special Committee’s consideration of the expected cash balances of the combined company as of the closing of the Merger resulting from the approximately $0.1 million of net cash (subject to certain assumptions) expected to be held by Channel upon completion of the Merger together with the proceeds from the PIPE Financing after repayment of the Ligand Bridge Loan and the PIPE Investor Bridge Loan; |

| • | the ability of Channel stockholders to participate in the growth and value creation of the combined company following the closing of the Merger by virtue of their continued ownership of Channel common stock; |

| • | the Special Committee’s view that the combined company will be led by an experienced senior management team from LNHC, many members of which have extensive drug development, research and development, business and regulatory expertise and a board of directors with representation from each of the current boards of directors of LNHC and Channel; |

| • | the current financial market conditions and historical market prices, volatility and trading information with respect to Channel common stock; |

| • | that the Special Committee reviewed and considered the terms of the Merger Agreement, including the parties’ respective representations, warranties and covenants, and the conditions to their respective obligations to consummate the Merger, the issuance of shares of Channel Series A Preferred Stock and the other transactions contemplated by the Merger Agreement. |

See the section titled “ The Merger Agreement” beginning on page 129in this information statement for a detailed discussion of the terms and conditions of the Merger Agreement. In particular, the Special Committee considered the following:

| • | the calculation of the exchange ratio used to establish the number of shares of Channel Series A Preferred Stock to be issued to Ligand in the Merger, subject to adjustment in accordance with the Merger Agreement based on the number of shares of Channel common stock outstanding on a fully diluted basis; |

| • | the ability of Channel to continue to conduct its business; |

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| • | the nature and number of the