Company: TVRD
Filing Date: 2025-01-27
Form Type: S-4/A
Source: 0001104659-25-006050
Chunk: 686

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-01-27
Form: S-4/A
Chunk 686
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               |      |   |      | ​ |               |         | ​ |               |         |   |      | ​ |          |            |      |
| Basic and Diluted                                                                                       | ​ |               | 4,512,422 | ​ |               |         |   |      | ​ |               |          | ​ |               | 19,134,096 | ​ |               |      |   |      | ​ |               |         | ​ |               |         |   |      | ​ |          | 28,243,251 | 7(h) |

See accompanying Notes to the Unaudited Pro Forma Condensed Combined Financial Information.

386

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION 1. Description of the Merger Transaction On December 17, 2024, Cara, Tvardi and Merger Sub entered into the Merger Agreement pursuant to which Merger Sub will merge with and into Tvardi, with Tvardi surviving as a wholly owned subsidiary of Cara. Subject to the terms and conditions of the Merger Agreement, at the Closing:

| a) | each outstanding share of Tvardi common stock, after giving effect to the conversion of Tvardi’s preferred stock into common stock, will be converted into the right to receive a number of shares of Cara common stock, based on the Exchange Ratio; |

| b) | the outstanding Convertible Notes will be converted into 3,842,872 shares of Cara common stock, in accordance with the terms discussed below; and |

| c) | each outstanding and unexercised option to purchase shares of Tvardi common stock (Tvardi options) immediately prior to the Closing will be assumed by Cara and will be converted to an option to purchase shares of Cara common stock, with necessary adjustments to the number of shares and exercise price to reflect the Exchange Ratio. |

Under the terms of the Merger Agreement, the board of directors of Cara will take actions to accelerate the vesting of (i) certain options to purchase Cara common stock held by non-executive employees or directors as of the closing of the Merger and (ii) Cara’s restricted stock units (RSUs) that vest solely on the basis of time. The options of Cara’s remaining executives will accelerate upon the closing of the Merger, pursuant to change-in-control language within the preexisting employment agreements or separation arrangements of the executives. Of the total incremental fair value associated with