Company: WHWK
Filing Date: 2025-01-21
Form Type: PREM14A
Source: 0001193125-25-009599
Chunk: 163

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-21
Form: PREM14A
Chunk 163
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 of the outstanding shares of Aadi for $80 million on a cash free, debt free basis (or an estimated $4.38 to $4.74 per share, depending on projected cash ranges of $40 million to $50 million at year end), as well as the subsequent
and most recent bid from Kaken Parent to purchase Aadi Sub for $85 million on a cash free, debt free basis); (iii) Aadi’s then-current stock price ($2.39 as of close of market on December 10, 2024) and a dilution model showing the
impact of a range of PIPE Financing sizes and prices on current stockholder ownership and related assumptions; (iv) initial orders from investors and the latest pricing feedback for the PIPE Financing from Jefferies, who informed management
that some investors were interested in the PIPE Financing only at a price per share reflecting a discount to Aadi’s per share dissolution value due to the preclinical nature of the ADC Programs and length of time to reach value inflection
points following the closing; and (v) the view of Jefferies that it would be difficult to obtain a price for the PIPE Financing that exceeded $2.75 per share without losing significant demand. The PIPE Pricing Committee deliberated regarding
the foregoing matters and also, among other things, regarding the potential of disclosing the divestiture of FYARRO in advance of the PIPE Financing and License Agreement, and related risks (including, particularly, the difficulty of holding the
investor syndicate together for the PIPE

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Financing if the sale of the FYARRO business and the PIPE Financing were not signed and announced simultaneously); the evaluation of the price of the PIPE Financing as a discount to the estimated
dissolution value or the estimated price per share in Kaken Parent’s initial offer to purchase all of the outstanding shares of Aadi (i.e., not as a premium to the then-current market price because the market was unaware of material information
related to the sale of the FYARRO business); the difficulty of negotiating a higher price for the PIPE Financing in light of the demand to date from a limited number of investors, all of whom were considered important to include in the syndicate;
potential stockholder reaction and litigation risk related to the PIPE Financing; the fiduciary duties of Aadi’s board of directors and the PIPE Pricing Committee related to the PIPE Financing, in particular due to the fact that
director-affiliated funds and potentially other insiders intended to participate in