Company: PTHS
Filing Date: 2025-11-25
Form Type: DEF 14A
Source: 0001753926-25-001827
Chunk: 63

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-25
Form: DEF 14A
Chunk 63
---
 Senior Indebtedness”). The Convertible Notes accrue interest at a rate of
8.5% per annum (which increases to 18.0% in the event of a default) and mature on November 6, 2027 (the “Maturity
Date”). The Convertible Notes are convertible by the holders thereof in whole or in part at any time after issuance and prior
to the Maturity Date into shares of Common Stock based on the Conversion Price of $34.442 per share, which cannot be reduced below
$34.442 per share without obtaining the approval of the shareholders of the Company (the “Shareholder Approval”), and is
subject to customary adjustments for stock splits, stock dividends, recapitalization and other similar transactions. On the later of
December 1, 2025 and the date the Company obtains the Shareholder Approval, if any, if the Conversion Price then in effect is
greater than $29.73 per share, the Conversion Price shall automatically lower to $29.73 per share. In addition, on the maturity date of
the Convertible Notes, if the Company’s Permitted Senior Indebtedness does not permit the Company to make the cash payment
then due under the Convertible Notes, if the Conversion Price will automatically adjust to a price equal to the average volume
weighted average price of the Common Stock for the five trading days ending immediately prior to the Maturity Date.

Under the applicable NYSE American Rules, in no event
may the Company issue to the holders of the Convertible Notes more than 612,030 shares of Common Stock, the Exchange Cap prior to the
execution of the November 2025 Securities Purchase Agreement, unless the Company obtains shareholder approval to issue shares of Common
Stock to the holders of the Convertible in excess of the Exchange Cap under the November 2025 Securities Purchase Agreement, or otherwise,
and in accordance with applicable NYSE American listing rules. If all of the Convertible Notes were converted into shares of Common Stock
issued and outstanding as of the date hereof (without taking into account the Exchange Cap limitation), such shares would represent approximately
17.1% of the total number of shares of our Common Stock outstanding and approximately 34.9% of the total number of shares of our Common
Stock held by non-affiliates outstanding, in each case, as of the date hereof.

NYSE American Requirements and the Necessity of Shareholder Approval

Section 713(a)(ii) of the NY