Company: WHWK
Filing Date: 2025-01-31
Form Type: DEFM14A
Source: 0001193125-25-018470
Chunk: 54

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-31
Form: DEFM14A
Chunk 54
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 pending Divestiture may cause such counterparties to seek to change existing business relationships with Aadi or the FYARRO Business, to forego new relationships or to enter into alternative agreements with our competitors because business partners may perceive that such new relationships are likely to be more stable. In addition, our current and prospective employees, including of the FYARRO Business, may feel uncertain about their roles within Aadi or the FYARRO Business prior to and following the completion of Divestiture, which may have an adverse effect on Aadi’s ability to attract or retain key management personnel or other key employees. If key employees depart, the business of Aadi, its financial condition and its results of operations may be adversely impacted. The focus and attention of our management and employee resources may also be diverted from operational matters during the pendency of the Divestiture to focus on integration matters and the consummation of the Divestiture. The Divestiture Agreement contains provisions that limit our ability to pursue alternatives to the Divestiture, which could discourage a third party from making a favorable alternative acquisition proposal, and provide that, in specified circumstances, we would be required to pay a termination fee to Kaken of $3.5 million. The Divestiture Agreement contains non-solicitationprovisions that make it substantially more difficult for us to sell Aadi Sub and/or the FYARRO Business to a party other than Kaken. Specifically, we agreed not to directly or indirectly solicit any acquisition proposals until the date of closing of the Divestiture or the proper termination of the Divestiture Agreement except that, subject to our obligation to pay Kaken a termination fee of $3.5 million, at any time prior to obtaining stockholder approval of the Divestiture, in response to a superior proposal or certain other intervening events, our board of directors may, among other actions, withdraw or materially modify its recommendation contained in this proxy statement or recommend the approval of an alternative acquisition proposal, if our board of directors concludes in good faith (after consultation with outside legal and financial advisors) that the failure to take such action could reasonably be expected to be inconsistent with our board of directors’ fiduciary duties under applicable law. In addition, the Divestiture Agreement does not contain a right for us to terminate the Divestiture Agreement in response to an intervening event or a superior proposal unless it complies with certain procedures in the Divestiture Agreement, including engaging in good faith negotiations with Kaken and its representatives during a specified period. These