Company: SWKH
Filing Date: 2025-10-10
Form Type: 425
Source: 0001552781-25-000322
Chunk: 2

Company: SWK Holdings Corp
Filing Date: 2025-10-10
Form: 425
Chunk 2
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 of the Company or held, directly or indirectly, by Parent,
Intermediary Sub or Acquisition Sub and all treasury shares, collectively “Cancelled Shares”) either (a) an amount of cash
equal to the quotient of (i) the Closing Company Net Asset Value (as defined and calculated in accordance with the Merger Agreement) and
(ii) the number of shares of Company Common Stock outstanding as of two days (excluding Sundays and holidays) prior to the Closing (such
quotient, the “Company Per Share NAV” and such consideration, the “Per Share Cash Consideration”) or (b) a number
of validly issued, fully paid and non-assessable shares of common stock, par value $0.01 per share, of Parent (“Parent Common Stock”)
equal to the quotient (rounded to four decimal places) of the Company Per Share NAV divided by the Parent Per Share NAV (as defined
in the Merger Agreement) (the “Per Share Stock Consideration”), in each case of (a) and (b), subject to the applicable holder’s
election for such share and the adjustments set forth in the Merger Agreement, plus(c) the Per Share Guaranteed Cash Payment (as
defined in the Merger Agreement), which is expected to be equal to approximately $0.74 per share (together with the Company Per Share
Cash Consideration, the Company Per Share Stock Consideration, in each case, as applicable, the “Total Per Share Consideration”),
to be paid by the Parent External Adviser.

In connection with the transactions contemplated by
the Merger Agreement, the Company will present its good faith determination of the carrying value of the underlying portfolio assets of
the Company as of 5:00 p.m. New York City time on the date that is two days (excluding Sundays and holidays) prior to the Closing (the
“Determination Date”) (the value of each of such asset, the “Company Marks”) to a valuation firm chosen by the
Company (the “Company Valuation Firm”). The Company Valuation Firm will then determine in good faith a valuation range with
respect to each underlying portfolio asset of the Company as of 5:00 p.m. New York City time on the Determination Date (each such range,
an “Asset Valuation Range”). The Company will then calculate the “Adjudicated Portfolio Value”, in which each
of the Company Marks valued outside the Asset Valuation Range for such portfolio asset are deemed to be within such Asset