Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 45

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 45
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 Lawsuits could delay or prevent the Merger.
Putative stockholder complaints, including stockholder class action complaints, and other complaints may be filed against Channel, Ligand, LNHC, and/or their respective boards of directors in connection with the transactions contemplated by the Merger Agreement.

The outcome of litigation is uncertain, and Channel, Ligand, LNHC, and/or their respective boards of directors may not be successful in defending against any such claims. Any such lawsuits that have been or may be filed against Channel, Ligand, LNHC, and/or their respective boards of directors could delay or prevent the Merger from becoming effective or from becoming effective within the intended timeframe, divert the attention of Channel’s, Ligand’s and/or LNHC’s management and employees from their respective day-to-day businesses and otherwise adversely affect their respective financial conditions.

The financial projections for LNHC included in the section entitled “ The Merger-Certain Unaudited Financial Projections ”, which were considered by the Channel board of directors in evaluating the Merger and used by M&N Sarchet in rendering the Fairness Opinion and performing its related financial analyses, reflect numerous variables, estimates and assumptions and are inherently uncertain. If any of these variables, estimates and assumptions prove to be wrong, such as the assumptions relating to the approval of LNHC’s product candidates, the actual results for the combined company’s business may be materially different from the results reflected in the financial projections.

As further described below in the section entitled “ The Merger-Certain Unaudited Financial Projections ”, in connection with the Channel board of directors’ evaluation of the Merger, preliminary internal financial forecasts for LNHC were prepared by the management of LNHC and provided to the management of Channel, for use by M&N Sarchet in connection with the rendering of the Fairness Opinion and performing its related financial analyses, as described below under “ The Merger-Opinion of M&N Sarchet to the Channel Special Committee and Channel Board of Directors ”. The financial forecasts and financial projections reflect numerous variables, estimates, and forecasts made by LNHC’s management at the time the initial financial forecasts were prepared by LNHC and approved by LNHC. If any of these variables, estimates and assumptions prove to be wrong, the actual results for the combined company’s business may differ materially from the results reflected in the financial projections.

The estimated probabilities of success included in the financial projections take into account a range of potential outcomes, including outcomes in which product candidates fail to achieve commercial