Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 24

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 24
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 technology covered by these license agreements. |

Risks Related to the Combined Company

| • | The market price of the combined company common stock is expected to be volatile, and the market price of the common stock may drop following the Merger; |

| • | Even if the Merger and the PIPE Financing are successful, the combined company will need substantial additional funding to finance its operations and pursue its business objectives, including the commercialization of ZELSUVMI. If the combined company is unable to raise capital when needed, or on acceptable terms, the combined company could be forced to curtail its planned operations and the pursuit of its growth strategy; and |

| • | The combined company will incur additional costs and increased demands upon management as a result of complying with the laws and regulations affecting public companies. |

These risks and other risks are discussed in greater detail under the section titled “ Risk Factors” beginning on page 20of this information statement. Channel and LNHC both encourage you to read and consider all of these risks carefully. The NYSE American Stock Market Listing Channel intends to file a listing application for the combined company common stock with The NYSE American. After completion of the Merger, the combined company will be renamed “Pelthos Therapeutics Inc.” and, assuming approval of the application for continued listing, the common stock of the combined company will trade on The NYSE American under the symbol “PTHS”. However, The NYSE American’s determination of the combined company’s listing status is not known as of the date of this information statement. In addition, under the Merger

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#### TABLE OF CONTENTS
Agreement, each of Channel’s and LNHC’s obligations to complete the Merger is subject to the satisfaction or waiver by each of the parties, at or prior to the Merger, of various conditions, including that the shares of Channel common stock to be issued in the Merger have been approved for listing on The NYSE American as of the closing of the Merger.

#### Anticipated Accounting Treatment
The Merger is expected to be accounted for as a business combination using the acquisition method of accounting under the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 805, Business Combinations (“ASC 805”). Channel and LNHC are each expected to meet the definition of a business as defined by ASC 805 by virtue of having inputs, processes and outputs. In addition, LNHC is expected to meet the definition of a variable interest entity (“VIE”) given the