Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 197

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 197
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 conduct business only in the ordinary course, subject to specific exceptions and (2) the restrictions on Channel’s ability to solicit alternative transaction proposals and dispose of its legacy assets; |

| • | the potential for litigation relating to the proposed transactions and the associated costs, burden and inconvenience involved in defending those proceedings; |

| • | the potential conflict of interest created by the fact that Channel’s executive officers and directors have financial or other interests in the Merger that may be different from, or in addition to, those of other stockholders, as more fully described below in “Interests of the Channel Directors and Executive Officers in the Merger”; and |

| • | various other risks associated with the combined company and the Merger, including those described in the sections titled “Risk Factors” beginning on page20and “Cautionary Note Regarding Forward-Looking Statements” beginning on page17of this information statement. |

After taking into account all of the factors set forth above, as well as others, the Special Committee concluded that the risks, uncertainties, restrictions and potentially negative factors associated with the Transactions were outweighed by the potential benefits of the Transactions to Channel and Channel stockholders. The foregoing information and factors considered by the Channel board of directors are not intended to be exhaustive but are believed to include all of the material factors considered by the Channel board of directors. In view of the wide variety of factors considered in connection with its evaluation of the Merger and the other transactions contemplated by the Merger Agreement and the complexity of these matters, the Channel board of directors did not find it useful,

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and did not attempt, to quantify, rank or otherwise assign relative weights to these factors. In considering the factors described above, individual members of the Channel board of directors may have given different weight to different factors. The Channel board of directors conducted an overall analysis of the factors described above, including thorough discussions with, and questioning of, Channel’s management team and legal and financial advisors, and considered the factors overall to be favorable to, and to support, its determination. Recommendation of the Channel board of directors On April 11, 2025, acting upon the Special Committee Recommendation, the Channel board of directors unanimously (a) determined that the terms and conditions of the Transaction Agreements and the Transactions are advisable, fair to and in the best interests of Channel and its stockholders, (b) approved and declared advisable the Transaction Agreements, including the Transactions, (c) authorized and approved the execution, delivery and performance by Channel