Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 99

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 99
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 its cash and could spend the proceeds in ways that do not improve its results of operations or enhance the value of Channel common stock. The failure by Channel’s management to apply these funds effectively could result in financial losses that could have a material adverse effect on our business, cause the price of Channel common stock to decline and delay the development of CC8464, CT2000 and any other new compounds that it may develop. Pending their use, Channel may invest its cash in a manner that does not produce income or that loses value.

Raising additional capital may cause dilution to existing stockholders of Channel, restrict its operations or require Channel to relinquish rights to its technologies, CC8464, CT2000 and CT3000.

Channel may seek additional capital through a combination of draw-downs under the CEF Purchase Agreement, public and private equity offerings, debt financings, collaborations and licensing arrangements. To the extent that Channel raises additional capital through the sale of equity or debt securities, your ownership interest will be diluted, and the terms may include liquidation or other preferences that adversely affect your rights as a stockholder. The incurrence of indebtedness would result in increased fixed payment obligations and could involve restrictive covenants, such as limitations on its ability to incur additional debt, limitations on its ability to acquire or license intellectual property rights and other operating restrictions that could adversely impact its ability to conduct its business. If Channel raises additional funds through strategic partnerships and alliances and licensing arrangements with third parties, it may have to relinquish valuable rights to its technologies, CC8464, CT2000 and CT3000 or grant licenses on terms unfavorable to it.

Channel is an “emerging growth company” and the reduced disclosure requirements applicable to emerging growth companies may make Channel common stock less attractive to investors.

Channel is an “emerging growth company,” as defined in the JOBS Act, and it may take advantage of certain exemptions and relief from various reporting requirements that are applicable to other public companies that are not “emerging growth companies.” In particular, while it is an “emerging growth company”: (i) it will not be required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act; (ii) it will be exempt from any rules that may be adopted by the Public Company Accounting Oversight Board requiring mandatory audit firm rotations or a supplement to the auditor’s report on financial statements; (iii) it will be subject to reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements