Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 183

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 183
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 without penalty, in whole or in part, upon two days’ prior written notice
to the Holder. All unpaid principal, together with any then unpaid and accrued interest and other amounts payable under the May
Bridge Note, will otherwise be due and payable on the earliest of: (i) September 30, 2025, (ii) the consummation of a Corporate
Event (as defined in the May Bridge Note), or (iii) when, upon or after the occurrence of an Event of Default (as defined in the
Note), such amounts are declared due and payable by the Holder or made automatically due and payable in accordance with the terms
of the May Bridge Note.

40 

Merger
Transactions

On
July 1, 2025, Channel consummated the previously announced merger transaction contemplated by the Merger Agreement, by and among
Channel, CHRO Merger Sub, LNHC, and solely for the purposes of Article III thereof, Ligand. Pursuant to the Merger Agreement,
(i) Merger Sub merged with and into LNHC, with LNHC as the surviving company in the Merger and, after giving effect to such Merger,
continuing as a wholly-owned subsidiary of the Company, (ii) Channel’s name was changed from Channel Therapeutics Corporation
to Pelthos Therapeutics Inc. and (iii) the Company effected a 10-for-1 Reverse Stock Split of all outstanding shares of its Common
Stock.

The
Common Stock share amounts included in these Notes to the Company’s financials are presented on a post-split basis and reflect
the Reverse Split.

On
July 2, 2025, Pelthos commenced trading on the NYSE American under the ticker symbol ”PTHS”, and Ligand invested
$18 million as part of a broader $50.1 million equity raise, entitling Ligand to a 13% royalty on worldwide net sales of
ZELSUVMI—the FDA-approved topical treatment for molluscum contagiosum. These actions occurred immediately following the
Merger and reflect both the successful closing of the transaction and the initiation of the commercial launch for ZELSUVMI in
July 2025. This material milestone underscores management’s near-term strategic direction.

Securities
Purchase Agreement

Concurrently
with the execution of the Merger Agreement, the Company entered into the Securities Purchase Agreement with LNHC and the PIPE
Investors, pursuant to which, among other things, on the