Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 388

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 388
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TABLE OF CONTENTS

Under the terms of the merger agreement, Channel will acquire 100% of the issued and outstanding equity interests of LNHC, and will change its name to Pelthos Therapeutics Inc. In connection with the transaction, Ligand has agreed to invest $18 million in the combined company and a group of strategic investors led by Murchinson has agreed to invest $32 million for a total of $50 million. Overview On September 27, 2023, Ligand Pharmaceuticals Incorporated (“Ligand”) acquired certain assets of Novan, Inc. (“Novan”). This transaction (“Novan Acquisition”) was accounted for as a business combination. Novan was a medical dermatology company focused on developing and commercializing innovative therapeutic products for skin diseases. Through its NITRICIL technology platform, Novan had concentrated on developing SB206 (berdazimer gel, 10.3%) as a topical prescription gel for the treatment of viral skin infections, with a focus on molluscum contagiosum. In January 2023, Novan submitted a New Drug Application to the U.S. Food and Drug Administration (the “FDA”) for berdazimer gel, 10.3% as a topical treatment for molluscum contagiosum which was subsequently approved by the FDA on January 5, 2024, and is commercially known as ZELSUVMI. As of the effective date of Novan Acquisition, all assets and liabilities acquired by Ligand in the Novan Acquisition have been held by LNHC, which is a wholly owned subsidiary of Ligand. Unless the context otherwise requires, the “Company,” for periods after the Novan Acquisition, refers to LNHC (“Successor”), and for the periods prior to the Novan Acquisition, refers to the corresponding part of Novan’s business that was subsequently acquired by Ligand in the Novan Acquisition and contributed into LNHC (“Predecessor”). As a result of the Novan Acquisition accounting, the results of operations, financial position and cash flows of the Predecessor and Successor are not directly comparable. Key Factors Affecting Our Results of Operations and Future Performance We believe that our financial performance has been, and in the foreseeable future will continue to be, primarily driven by multiple factors as described below, each of which presents growth opportunities for our business. These factors also pose important challenges that we must successfully address in order to sustain our growth and