Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 246

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 246
---
ger Agreement, after consultation with its financial and outside legal advisors, taking into account all the terms and conditions of such proposal and the Merger Agreement (including any termination or break-up fees and conditions to consummation, as well as any written, binding offer by the other party hereto to amend the terms of the Merger Agreement, which offer is not revocable for at least four business days) that the board of directors of such party determines to be relevant, and (b) which board

135

TABLE OF CONTENTS

of directors of such party has determined to be reasonably capable of being completed on the terms proposed, taking into account all financial, regulatory, legal and other aspects of such proposal that board of directors of such party determines to be relevant (including the likelihood and timing of consummation as compared to the transactions contemplated by the Merger Agreement). The Merger Agreement also provides that each party will as promptly as reasonably practicable, and in any event, no later than one day after receipt, advise the other of the status and terms of, and keep the other party reasonably informed with respect to, any Acquisition Proposal or any material change or proposed material change to that Acquisition Proposal. Such party in receipt of an Acquisition Proposal must provide the other party with written notice of the first decision by its board of directors to consider any Acquisition Proposal, to enter into discussions or negotiations concerning any Acquisition Proposal or to provide non-public information with respect to such to any person. Board Recommendation Change Under the Merger Agreement, subject to certain exceptions described below, Channel agreed that its board of directors (and any committee thereof) may not take any of the following actions, each of which are referred to in this information statement as a Channel board of directors recommendation change:

| • | fail to include its recommendation to Channel stockholders in connection with the solicitation of their approval of the share issuance and the amendment to Channel’s articles of incorporation to change the name of Channel to “Pelthos Therapeutics Inc.” or withdraw or modify such recommendation in a manner adverse to LNHC; |

| • | withhold, withdraw or modify, or publicly propose to withhold, withdraw or modify, the approval or recommendation of the Channel board of directors with respect to the share issuance or the amendment to Channel’s articles of incorporation to increase the number of authorized shares of Channel common stock and the amendment to Channel’s articles of incorporation to change the name of Channel to “Pelthos Therapeutics Inc.”; |

| • | after the receipt by Channel of an Acquisition Proposal