Ligand Pharmaceuticals (LGND) has entered into a definitive merger agreement with Channel Therapeutics to merge their respective subsidiaries. The deal will see Ligand's Pelthos Therapeutics Inc. and LNHC, Inc. merge with Channel's CHRO Merger Sub Inc.
This strategic merger will be supported by a $50 million capital infusion from a group of investors led by Murchinson. Once finalized, the combined company will be known as Pelthos Therapeutics Inc. and will trade on the NYSE American exchange under the ticker "PTHS."
Under the merger terms, Channel will acquire all outstanding equity interests of Pelthos and subsequently rebrand as Pelthos Therapeutics. Ligand has committed to investing $18 million in the new entity, while the investor group will contribute $32 million, totaling the $50 million investment.
On completion of the transaction, the executive team will include Plesha as CEO and Knuettel as CFO. The board will be composed of Plesha, independent directors Peter Greenleaf and Matt Pauls, two appointees from Ligand, and two additional directors endorsed by Murchinson, who currently serve on Channel's board.
The merger is anticipated to conclude in the summer of 2025, pending standard closing conditions.
