Company: TVRD
Filing Date: 2025-02-14
Form Type: S-4/A
Source: 0001104659-25-013053
Chunk: 282

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-02-14
Form: S-4/A
Chunk 282
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 provisions of the Merger Agreement that restrict Cara’s ability to solicit or, subject to certain exceptions, engage in discussions or negotiations with third parties

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TABLE OF CONTENTS

regarding an Acquisition Proposal, and the fact that, upon termination of the Merger Agreement under certain specified circumstances, Cara will be required to pay a termination fee of $2.25 million, which could discourage certain other potential acquirers from proposing an alternative transaction that may be more advantageous to Cara’s stockholders;

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the substantial expenses to be incurred in connection with the Merger, including the costs associated with the Registration Statement and any related litigation;

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the possibility of disruptive stockholder litigation following announcement of the Merger;

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the possible volatility, at least in the short term, of the trading price of Cara common stock resulting from the announcement of the Merger;

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the risk that the Merger might not be consummated in a timely manner or at all and the potential adverse effect of the public announcement of the Merger or delay or failure to complete the Merger on the reputation of Cara;

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the likely detrimental effect on Cara’s cash position, stock price and ability to initiate another process and to successfully complete an alternative transaction should the Merger not be completed;

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the risk to Cara’s business, operations and financial results in the event that the Merger is not consummated, including the diminution of Cara’s cash and the significant challenges associated with the need to raise additional capital through the public or private sale of equity securities;

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the early stage of development of Tvardi’s product candidates, which, in the future, may not generate acceptable clinical data or be successfully developed into products that are marketed and sold;

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the strategic direction of the combined company following the completion of the Merger, which will be determined by a board of directors initially comprised of six directors designated by Tvardi and one director designated by Cara;

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the restrictions in the Merger Agreement on the conduct of Cara’s business prior to the consummation of the Merger, which may delay or prevent Cara from undertaking business opportunities that may arise prior to the consummation of the Merger; and

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various other risks associated with the combined company and the Merger, including those described in the section titled “Risk Factors” beginning on page 27of this proxy statement/prospectus.

The foregoing information and reasons considered by the Cara Board are the material factors considered by the Cara Board. In view of the wide variety