Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 352

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 352
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 26, 2024, Channel entered into a Common Stock Purchase Agreement, dated as of July 26, 2024 (the “CEF Purchase Agreement”), with Tikkun Capital LLC (“Tikkun”), providing for a committed equity financing facility, pursuant to which, upon the terms and subject to the satisfaction of the conditions contained in the CEF Purchase Agreement, Tikkun has committed to purchase, at Channel’s direction in its sole discretion, up to an aggregate of $30,000,000 (the “Total Commitment”) of the shares of Channel common stock (the “Purchase Shares”), subject to certain limitations set forth in the CEF Purchase Agreement, from time to time during the term of the CEF Purchase Agreement. Concurrently with the execution of the CEF Purchase Agreement, Channel and Tikkun also entered into a Registration Rights Agreement, dated as of July 26, 2024, pursuant to which Channel agreed to file with the SEC one or more registration statements, to register under the Securities Act, the offer and resale by Tikkun of all of the Purchase Shares that may be issued and sold by Channel to Tikkun from time to time under the CEF Purchase Agreement.

On August 5, 2024, the Channel board of directors authorized the Repurchase Plan, pursuant to which up to $250,000 of Channel common stock may be repurchased prior to December 31, 2024, unless completed sooner or otherwise extended. Open market purchases are intended to be conducted in accordance with applicable Securities and Exchange Commission regulations, including the guidelines and conditions of Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The timing and actual number of shares repurchased will depend on a variety of factors including trading price, Channel’s financial performance, corporate and regulatory requirements and other market conditions. On October 22, 2024, the Channel board of directors authorized an amendment (the “Amendment”) to the Repurchase Plan to increase the total value of shares of Channel common stock available for repurchase by Channel under the Repurchase Plan by an additional $500,000, to $750,000.

#### Future Funding Requirements
Channel’s primary use of cash is to fund clinical development, operating expenses and repay accrued liabilities associated with Channel’s IPO and prior operating expenses.

With respect to Channel’s future expected operations expenses, the primary expense drivers will be research and development and management overhead, including costs of being a public company