Pelthos Therapeutics Inc. 8-K

What Happened
Pelthos Therapeutics Inc. (PTHS) announced on Jan. 12, 2026 that it entered a Venture Loan and Security Agreement with Horizon Technology Finance Corporation for a senior secured term loan facility of up to $50.0 million. The company and two wholly owned subsidiaries (LNHC, Inc. and Channel Pharmaceutical Corporation) are co-borrowers. The Borrowers drew $30.0 million at closing; the remaining $20.0 million is available upon achievement of specified milestones. A press release announcing the closing was issued Jan. 13, 2026.

Key Details

• Total facility: up to $50.0 million; initial draw: $30.0 million on Jan. 12, 2026; $20.0 million available upon achieving milestones.
• Interest: prime rate + 3.75% with a prime-rate floor of 6.75% (implies a minimum rate of 10.5%).
• Repayment: monthly interest-only payments from Mar. 1, 2026 through Feb. 1, 2029 (Interest-Only Period); thereafter 24 monthly principal+interest payments. If Pelthos achieves ≥ $75.0M trailing 12‑month consolidated revenue, interest-only period extends through Feb. 1, 2030 and is followed by 12 monthly principal+interest payments. Maturity is Jan. 31, 2031.
• Fees and prepayment: $300,000 commitment fee paid at closing; additional 1.0% fee on the principal of the final six term loans when funded; 5.0% final payment due at payoff. Prepayment premiums: 3.0% during interest-only period (or extended), 2.0% within 12 months after that period, 1.0% thereafter.
• Security and equity kicker: loans are secured by substantially all assets (including IP, subject to exceptions). Pelthos issued warrants to purchase 65,488 shares of common stock at $27.49 per share, exercisable for five years.
• Covenants/defaults: customary affirmative/negative covenants and events of default; default can accelerate debt, terminate commitments, increase interest rate by 4.0% and permit other remedies.

Why It Matters
This financing provides immediate liquidity ($30M) and access to up to $50M to support commercialization of ZELSUVMITM, launch recently-acquired products Xepi® and Xeglyze®, and for working capital. For investors, key takeaways are: (1) improved near-term cash runway and funding for product launches; (2) added debt on the balance sheet secured by company assets and carrying a relatively high effective minimum interest rate and fees; and (3) potential dilution from the issued warrants (65,488 shares exercisable at $27.49). Covenants and acceleration risks could limit strategic flexibility if financial or covenant thresholds are missed. The company filed the full loan agreement and warrant form as exhibits to the 8‑K.