Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 95

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 95
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under. To the extent the exclusive forum provision restricts the courts in which claims arising under the Securities Act may be brought, there is uncertainty as to whether a court would enforce such a provision. Channel notes that investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. Although Channel believes this provision will benefit Channel by providing increased consistency in the application of Nevada law in the types of lawsuits to which it applies, the provision may have the effect of discouraging lawsuits against its directors and officers.

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**A significant portion of Channel’s total outstanding shares are restricted from immediate resale but may be sold into the market in the near future, which could cause the market price of Channel common stock to drop significantly, even if our business is performing well.

Sales of substantial amounts of shares of Channel common stock in the public market following the IPO, or the perception that these sales could occur, could cause the market price of its securities to decline. These sales, or the possibility that these sales may occur, also might make it more difficult for it to sell equity securities in the future at a time and at a price that it deems appropriate.

All of the shares of Channel common stock in the IPO are immediately tradable without restriction under the Securities Act, except for any securities held by “affiliates,” as that term is defined in Rule 144 under the Securities Act, or Rule 144.

The remaining shares of Channel common stock outstanding, other than the 2,969,823 shares (the “Selling Stockholder Shares”) of Channel common stock that it has registered on behalf of certain selling stockholders (the “Selling Stockholders”) identified in a separate prospectus (the “Resale Prospectus”) and which may be resold by such Selling Stockholders from time to time, are restricted securities within the meaning of Rule 144 under the Securities Act but will be eligible for resale subject to applicable volume, means of sale, holding period and other limitations of Rule 144 under the Securities Act or pursuant to an exception from registration under Rule 701 under the Securities Act, subject to the lock-up agreements executed in conjunction with the IPO.

In addition, Channel has registered the Selling Stockholder Shares pursuant to the Resale Prospectus and, as a result, all of the Selling Stockholder Shares are freely tradable under the Securities Act, subject to the terms of the lock up agreements.

Channel intends to file one or more registration statements on Form S-8 under the Securities Act to register