Company: WHWK
Filing Date: 2025-01-31
Form Type: DEFM14A
Source: 0001193125-25-018470
Chunk: 111

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-31
Form: DEFM14A
Chunk 111
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 discussion is based upon the Internal Revenue Code of 1986, as amended (the “Code”), currently applicable and proposed Treasury regulations under the Code (the “Treasury Regulations”), judicial decisions, and published rulings and administrative pronouncements of the Internal Revenue Service (the “IRS”), all as currently in effect as of the date of this proxy statement, and all of which are subject to change or to differing interpretation, possibly with retroactive effect. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that discussed below. Tax considerations under state, local, and non-U.S. laws, or federal laws other than those pertaining to income tax, are not addressed in this proxy statement.

The proposed Divestiture is entirely a corporate action. Our stockholders will not realize any gain or loss for U.S. federal income tax purposes as a result
of the Divestiture.

The proposed Divestiture will be treated as a sale of corporate stock in exchange for cash. We anticipate that our tax basis in our
Aadi Sub stock will not be less than the purchase price for the sale of the FYARRO Business, and accordingly, that we do not expect to realize gain on the sale of our Aadi Sub stock. Nevertheless, the determination of whether we will realize gain or
loss on the proposed Divestiture and (if applicable) whether and to what extent our tax attributes will be available to offset any gain is highly complex and is based in part upon facts that will not be known until the completion of the Divestiture
and the finalization of any purchase price adjustments associated with the Divestiture. Therefore, it is possible that we will incur U.S. federal income tax as a result of the proposed Divestiture.

We also expect that the portion of our consolidated net operating loss carryforwards (“NOLs”) and other tax attributes that are allocable to Aadi
Sub will generally remain with Aadi Sub and will no longer constitute tax attributes of Aadi following the Divestiture.

Regulatory Approvals Required for the Divestiture

General Efforts

Upon the terms and subject to the
conditions set forth in the Divestiture Agreement, Aadi and Kaken agreed to use commercially reasonable efforts to avoid or eliminate legal impediments so as to enable the completion of the Divestiture to occur as expeditiously as possible.

Appraisal Rights

No
appraisal