Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 93

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 93
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. In the event of a delisting, Channel would take actions to restore its compliance with NYSE American’s listing requirements, but Channel can provide no assurance that any such action taken by it would allow Channel common stock to become listed again, stabilize the market price or improve the liquidity of Channel common stock, prevent Channel common stock from dropping below NYSE American’s minimum bid price requirement or prevent future non-compliance with such listing requirements.

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If Channel cannot maintain the listing of Channel common stock for trading on NYSE American, it could face significant material adverse consequences, including:

| • | a limited availability of market quotations for Channel common stock; |

| • | reduced liquidity for Channel common stock; |

| • | a determination that Channel common stock is a “penny stock” which will require brokers trading in Channel common stock to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for Channel common stock; |

| • | a limited amount of news and analyst coverage; and |

| • | a decreased ability to issue additional Channel common stock or obtain additional financing in the future. |

Channel could issue “blank check” preferred stock without stockholder approval with the effect of diluting then current stockholder interests and impairing their voting rights; and provisions in its charter documents could discourage a takeover that stockholders may consider favorable. Channel’s Articles of Incorporation authorizes the issuance of up to 20,000,000 shares of “blank check” preferred stock with designations, rights and preferences as may be determined from time to time by the Channel board of directors. The Channel board of directors is empowered, without stockholder approval, to issue a series of preferred stock with dividend, liquidation, conversion, voting or other rights which could dilute the interest of, or impair the voting power of, its common stockholders. The issuance of a series of preferred stock could be used as a method of discouraging, delaying, or preventing a change in control of Channel. For example, it would be possible for Channel board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of Channel. Channel’s Series C Convertible Redeemable Preferred Stock, par value of $0.0001 per share (“Channel Series C Preferred Stock”) currently ranks (i) senior to the Channel common stock and any class or series of capital stock of Channel created specifically ranking by its terms junior to the Channel Series C