Pelthos Therapeutics Secures Up to $50 Million Senior Secured Term Loan Facility from Horizon Technology Finance

Rhea-AI Summary

Pelthos Therapeutics (NYSE American: PTHS) secured a senior secured term loan facility with Horizon Technology Finance providing $30 million funded at closing and up to $20 million more (total facility up to $50 million) to support commercialization of ZELSUVMI (berdazimer) 10.3% gel, the launches of Xepi and Xeglyze, and working capital.

The loan rate is Prime + 3.75% (10.50% currently), thirty-six month amortization start (may begin month 48 if milestones met), 60-month term, and interest-only until amortization. Pelthos issued warrants for 65,488 shares at an exercise price of $27.49. Cash as of Sept 30, 2025 was $14.2 million, and the company issued $18.0 million of convertible notes on Nov 6, 2025.

Positive

• Initial funding of $30 million with up to $50 million available
• Proceeds earmarked to commercialize ZELSUVMI and launch Xepi and Xeglyze
• Interest charged only on drawn capital, offering flexibility for cash management
• Amortization delayed until month 36 (or 48 if milestones met), providing near-term payment relief
• Augmented liquidity after Nov 6, 2025 convertible notes of $18.0 million

Negative

• Effective rate is high at Prime + 3.75% (10.50% currently), increasing financing cost
• Warrants for 65,488 shares at $27.49 introduce potential dilution upon exercise
• Amortization commencement will increase cash outflows starting month 36 (or month 48 if delayed)

News Market Reaction

-1.31%

1 alert

-1.31% News Effect

On the day this news was published, PTHS declined 1.31%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Term loan facility: $50 million Initial funding: $30 million Additional availability: $20 million +5 more

8 metrics

Term loan facility $50 million Senior secured term loan capacity from Horizon Technology Finance

Initial funding $30 million Funded at closing under Horizon term loan facility

Additional availability $20 million Undrawn capacity contingent on achieving milestones

Interest rate Prime + 3.75% (10.50%) Rate paid only on drawn capital under loan

Loan term 60 months Amortization beginning at month 36 or month 48 if milestones met

Warrants issued 65,488 shares at $27.49 Common stock warrants granted to Horizon in connection with facility

Cash position $14.2 million Cash, equivalents, and investments as of September 30, 2025

Convertible notes $18.0 million Convertible notes issued November 6, 2025

Market Reality Check

Price: $24.75 Vol: Volume 36,372 vs 20-day a...

high vol

$24.75 Last Close

Volume Volume 36,372 vs 20-day average 23,814 (relative volume 1.53) ahead of the loan news. high

Technical Price $25.55 is trading below the $26.70 200-day moving average before this announcement.

Peers on Argus

PTHS was down 1.45% pre-news while peers were mixed: HYFT -12.71%, IFRX -4.67%, ...

PTHS was down 1.45% pre-news while peers were mixed: HYFT -12.71%, IFRX -4.67%, MEIP +6.23%, ORMP -0.58%, PLRX 0%, indicating company-specific trading rather than a broad biotech move.

Historical Context

5 past events · Latest: Jan 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 05	Product acquisition	Positive	-9.0%	Acquisition of FDA-approved Xeglyze head-lice treatment for $1.8 million.
Dec 23	Board change	Positive	-1.8%	Appointment of experienced finance executive Andrew Einhorn to board.
Dec 04	Access agreement	Positive	+0.6%	PBM deal expanding ZELSUVMI access to over 20 million covered lives.
Dec 02	Conference participation	Neutral	-5.0%	CEO scheduled for fireside chat at major healthcare conference.
Nov 13	Earnings update	Positive	-7.3%	Q3 2025 results with ZELSUVMI launch revenues and multiple financings.

Pattern Detected

Recent corporate and commercial milestones have often been followed by negative 1-day price reactions, even when the news appeared strategically positive.

Recent Company History

Over the past few months, Pelthos reported several strategic steps: Q3 FY25 results with $7.1 million ZELSUVMI net revenue and a $50.1 million private placement, an $18 million convertible notes financing, and cash of $14.2 million as of September 30, 2025. It later secured PBM access for ZELSUVMI covering 20+ million lives and acquired Xeglyze for $1.8 million. Despite these developments, 1-day price reactions to most of these announcements were negative, suggesting a pattern of selling into news.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-09-19

An effective shelf registration on Form S-3/A dated 2025-09-19 remains active through 2028-09-19, with 0 recorded usages and not yet effective, indicating capacity for future registered offerings if activated.

Market Pulse Summary

This announcement outlines a senior secured term loan facility of up to $50 million, with $30 millio...

Analysis

This announcement outlines a senior secured term loan facility of up to $50 million, with $30 million funded at closing and $20 million tied to milestones, aimed at accelerating commercialization of ZELSUVMI and two other FDA-approved products. It follows earlier financings, including $18.0 million in convertible notes and cash of $14.2 million as of September 30, 2025. Investors may focus on how added debt, warrant issuance, and the existing shelf capacity shape Pelthos’ capital structure versus its commercial growth plans.

Key Terms

senior secured term loan facility, warrants, convertible notes, par value

4 terms

senior secured term loan facility financial

"Pelthos Therapeutics Secures Up to $50 Million Senior Secured Term Loan Facility"

A senior secured term loan facility is a type of borrowed money that a company takes out, which is backed by its valuable assets like property or equipment. Because it is secured by these assets and ranks higher in repayment priority, it is considered safer for lenders and typically offers lower interest rates. For investors, it provides a relatively stable and priority claim on the company's assets if it encounters financial difficulties.

warrants financial

"Pelthos issued Horizon warrants to purchase 65,488 shares of its common stock"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

convertible notes financial

"augmented with the issuance on November 6, 2025 of $18.0 million in convertible notes"

Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.

par value financial

"shares of its common stock, par value $0.0001 per share, at an exercise price"

Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.

AI-generated analysis. Not financial advice.

The minimally dilutive funding will accelerate Pelthos’ highly successful commercialization efforts for its lead product, ZELSUVMI™ (berdazimer) topical gel, 10.3% for the treatment of molluscum contagiosum, two newly acquired FDA approved cutaneous infectious disease products and for working capital and general corporate purposes

DURHAM, N.C., Jan. 13, 2026 (GLOBE NEWSWIRE) -- Pelthos Therapeutics Inc. (NYSE American: PTHS), a biopharmaceutical company committed to commercializing innovative therapeutic products for unmet patient needs (“Pelthos”), today announced it has secured financing from Horizon Technology Finance Corporation (“Horizon”) (NASDAQ: HRZN), an affiliate of Monroe Capital, with an initial funding of $30 million, and up to $20 million to support future growth.

“We believe this transaction with Horizon gives Pelthos the flexibility and resources to accelerate the commercialization of our cutaneous infectious disease product portfolio, strengthens our balance sheet, and most importantly, brings ZELSUVMI, the first and only FDA approved treatment for molluscum for use at home and on the go to doctors, individuals, and families struggling with such a persistent and difficult to treat infection. We will continue to execute on our corporate strategy, which focuses on providing innovative treatment options for patients in need, particularly children and families struggling with highly communicable infections,” said Scott Plesha, CEO of Pelthos.

“We are pleased to partner with Scott and the strong Pelthos management team as they advance important therapies for underserved cutaneous indications. We believe the Pelthos team brings the experience, expertise and commitment needed to deliver meaningful results across a portfolio addressing significant unmet needs. We look forward to supporting their continued growth as they expand access to innovative dermatologic treatments,” said Paul Seitz, Chief Investment Officer of Horizon.

Horizon funded $30 million at closing, with up to an additional $20 million available upon achieving certain milestones. The rate is Prime plus 3.75%, currently 10.50%, paid only on drawn capital. The term is sixty months with amortization beginning at month thirty-six with the ability to begin in month 48, if certain milestones are met and interest only until amortization commences. In connection with the financing, Pelthos issued Horizon warrants to purchase 65,488 shares of its common stock, par value $0.0001 per share, at an exercise price of $27.49 per share. Proceeds from the financing will be used to support the commercialization of ZELSUVMI™, launch Xepi® and Xeglyze®, and for working capital and general corporate purposes.

Other than the limited number of shares of common stock issuable upon exercise of the warrants issued in connection with the facility, the capital raised is non-dilutive to existing shareholders of the Company.

“We want to thank Horizon for their commitment to Pelthos, their professionalism and the depth of their work to complete this transaction. Our experience with ZELSUVMI is that the more that investors understand the burden of this pox virus, and the unique features and benefits of ZELSUVMI, the more excited they become about this opportunity. Importantly, we believe this credit facility demonstrates our intent to manage our equity capitalization efficiently, without compromising the launch of our first three products,” said Frank Knuettel II, CFO of Pelthos.

As of September 30, 2025, Pelthos had cash, cash equivalents, and investments of $14.2 million, which was augmented with the issuance on November 6, 2025 of $18.0 million in convertible notes.

Oppenheimer & Co. served as financial advisor and Morgan, Lewis & Bockius LLP and Sullivan & Worcester LLP acted as legal advisors to Pelthos. Holland & Knight LLP served as legal advisor to Horizon.

About Horizon Technology Finance
Horizon Technology Finance Corporation (NASDAQ: HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company that provides capital in the form of secured loans to venture capital and private equity-backed companies and publicly traded companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located throughout the U.S. Monroe Capital is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. To learn more, please visit horizontechfinance.com.

About Pelthos Therapeutics
Pelthos Therapeutics is a biopharmaceutical company committed to commercializing innovative, safe, and efficacious therapeutic products to help patients with unmet treatment burdens. The company’s lead product ZELSUVMI™ (berdazimer) topical gel, 10.3%, for the treatment of Molluscum contagiosum, was approved by the U.S. Food and Drug Administration in 2024. More information is available at www.pelthos.com. Follow Pelthos on LinkedIn and X.

Forward-Looking Statements
This press release contains forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, regarding Pelthos’ current expectations. All statements, other than statements of historical fact, could be deemed to be forward-looking statements. In some instances, words such as “plans,” “believes,” “expects,” “anticipates,” and “will,” and similar expressions, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our good faith beliefs (or those of the indicated third parties) and speak only as of the date hereof. These forward-looking statements include, without limitation, references to our expectations regarding (i) our belief that the credit facility will give the Company the flexibility and resources to accelerate the commercialization of the Company’s cutaneous infectious disease product portfolio, strengthen the Company’s balance sheet and make ZELSUVMI more accessible to doctors, individuals and families struggling with molluscum, (ii) the Company’s plans and timelines with respect to executing on its corporate strategy, (iii) the Company’s intended use of proceeds from the credit facility, (iv) our belief that the credit facility demonstrates the Company’s intent to manage its equity capitalization efficiently without compromising the launch of its first three products, and (v) the Company’s future opportunities, strategy and plans in the market. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those set forth in such forward-looking statements include, but are not limited to, risks and uncertainties related to there being no guarantee that the trading price of the combined company’s Common Stock will be indicative of the combined company’s value or that the combined company’s Common Stock will become an attractive investment in the future; we may rely on collaborative partners for milestone payments, royalties, materials revenue, contract payments and other revenue projections and may not receive expected revenue; we and our partners may not be able to timely or successfully advance any product(s) in our internal or partnered pipeline or receive regulatory approval and there may not be a market for the product(s) even if successfully developed and approved; and changes in general economic conditions, including as a result of war, conflict, epidemic diseases, the implementation of tariffs, and ongoing or future litigation could expose us to significant liabilities and have a material adverse effect on us. These and other risks and uncertainties are described more fully in our filings with the U.S. Securities and Exchange Commission. The information in this press release is provided only as of the date of this press release, and we undertake no obligation to update any forward-looking statements contained in this press release based on new information, future events, or otherwise, except as required by law.

Contacts
Investors:
LifeSci Advisors, LLC
Mike Moyer, Managing Director
mmoyer@lifesciadvisors.com

Media:
KWM Communications
Kellie Walsh
pelthos@kwmcommunications.com
(914) 315-6072

Horizon Investor Relations:
ICR
Garrett Edson
ir@horizontechfinance.com
(860) 284-6450

Horizon Media Relations:
ICR
Chris Gillick
HorizonPR@icrinc.com
(646) 677-1819

FAQ

What financing did Pelthos (PTHS) announce on January 13, 2026?

Pelthos announced a senior secured term loan with Horizon providing $30 million funded at closing and up to $20 million additional, for a total facility of $50 million.

How will Pelthos (PTHS) use the $30 million from Horizon?

Proceeds will support commercialization of ZELSUVMI, the launches of Xepi and Xeglyze, and working capital and general corporate purposes.

What are the loan terms for Pelthos (PTHS) with Horizon?

The term is 60 months, rate is Prime + 3.75% (10.50% currently), interest-only until amortization begins at month 36 (can be deferred to month 48 if milestones met).

Does the Horizon financing dilute Pelthos (PTHS) shareholders?

The facility is non-dilutive except for warrants issued to Horizon to purchase 65,488 shares at an exercise price of $27.49.

What was Pelthos's cash position before the Horizon loan?

As of September 30, 2025, Pelthos had $14.2 million in cash, cash equivalents, and investments; the company also issued $18.0 million in convertible notes on Nov 6, 2025.

Will Pelthos (PTHS) pay interest on undrawn funds from the $50 million facility?

No; interest is paid only on drawn capital under the facility.