Company: WHWK
Filing Date: 2025-01-31
Form Type: DEFM14A
Source: 0001193125-25-018470
Chunk: 160

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-31
Form: DEFM14A
Chunk 160
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 updated bid from Bidder B; the
importance of the PIPE Financing to validate the investment thesis for the ADC Programs; the collective view of the management team and advisors that the PIPE Financing would be jeopardized if the definitive agreement for the sale of the FYARRO
business was first announced; certain due diligence items highlighted by investors related to the ADC Programs; and the impact of the updated bid from Bidder B on management’s dissolution analysis.

On December 18, 2024, as part of negotiations for the PIPE Financing, Aadi agreed to the addition of a proposed covenant in the Subscription Agreement
that required each of Aadi’s directors and executive officers to enter into a lock-up agreement lasting through the close of trading on the effective date of the resale registration statement contemplated
to be filed by Aadi with the SEC pursuant to the Registration Rights Agreement. Such lock-up agreements were signed and delivered in connection with the signing of the Subscription Agreement on
December 19, 2024.

On December 19, 2024, the PIPE Pricing Committee held a virtual meeting at which representatives of Aadi’s management,
Leerink Partners and Wilson Sonsini were present. At the meeting, Aadi’s management team provided an update regarding the PIPE Financing, including an updated investor list (comprised of nine total institutional investors, of which six were
unaffiliated with Aadi’s directors and officers), proposed allocations, and proposed parameters for the PIPE Financing relating to size and price, as well as an update regarding the status of investor due diligence. The PIPE Pricing Committee
discussed the foregoing matters with Aadi’s management team and also discussed, among other things, feedback from a major lead third party investor that the anticipated price for the PIPE Financing would likely be a small premium to market
price; the low probability of being able to significantly improve upon such price, based on the price discovery process to date and the importance of not losing any investor in the syndicate; the feedback that the improved bids for the proposed sale
of the FYARRO business were not meaningfully impacting pricing discussions because Aadi was being valued by investors as a preclinical opportunity and discounted accordingly; updates to the dissolution analysis based on the improved bids for the
proposed sale of the FYARRO business; and the difficulty of holding the investor syndicate for the PIPE Financing together if the definitive agreement for the sale of the FYARRO business, the License Agreement and the PIPE Financing were not
announced concurrently, or if the PIPE Financing was