FREEHOLD, N.J., June 27, 2025 (GLOBE NEWSWIRE) -- Channel Therapeutics Corporation, ("Channel" or the "Company"), (NYSE:CHRO), an emerging leader in the development of non-opioid pain treatment therapeutics, today announced a 10-for-one reverse split (the "Reverse Stock Split") of the Company's common stock (the "Common Stock"). The Reverse Stock Split is intended to increase the market price per share of the Company's Common Stock and help the Company satisfy the initial listing requirements of the NYSE American (the "NYSE American") in connection with the anticipated closing of the previously announced merger of CHRO Merger Sub, Inc., a wholly owned subsidiary of the Company, with and into LNHC, Inc. and the related approximately $50 million in capital to be raised from a group of strategic investors led by Murchinson (together, the "Proposed Transactions").

On April 16, 2025, the Company's stockholders approved a reverse stock split of the Company's Common Stock at a ratio in the range of 5-for-one to 25-for-one, with such ratio to be determined by the Company's Board of Directors. The Reverse Stock Split is expected to be effective before market open on July 1, 2025 (the "Effective Time") and the Company's Common Stock will begin trading on a split-adjusted basis on the NYSE American under the name "Pelthos Therapeutics Inc." at the market open on July 2, 2025.

At the Effective Time, every 10 issued and outstanding shares of the Company's Common Stock will be converted into one share of the Company's Common Stock. Once effective, the Reverse Stock Split will reduce the number of issued and outstanding shares of Common Stock from approximately 6,485,007 to approximately 648,501 shares, notwithstanding reconciliation of fractional shares.

Each stockholder's percentage ownership interest in the Company will remain unchanged as a result of the Reverse Stock Split. No fractional shares shall be issued in connection with the Reverse Stock Split, and any fractional shares resulting from the Reverse Stock Split will be rounded up at the participant level with The Depository Trust Company. Each certificate that immediately prior to the Effective Time represented shares of Common Stock shall ...