Company: WHWK
Filing Date: 2025-01-31
Form Type: DEFM14A
Source: 0001193125-25-018470
Chunk: 158

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-31
Form: DEFM14A
Chunk 158
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 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 the PIPE Financing (but had not been involved in pricing negotiations, which were being led by independent third-party lead investors). Following discussion, the
PIPE Pricing Committee directed Aadi’s management team and Jefferies to continue to attempt to negotiate a higher price with the independent third party lead investors for the PIPE Financing that was as close as possible to the estimated
dissolution value.

On December 13, 2024, the PIPE Pricing Committee held a virtual meeting with Aadi’s management and representatives of
Jefferies and Wilson Sonsini. At the meeting, representatives of Jefferies provided an update on investor demand and the current syndicate for the PIPE Financing and also summarized the number of investors contacted (54) and the rationale and
strategy for targeting such investors, the number of investors wall-crossed (48), and the number of management meetings held with investors (31). Representatives of Jefferies also discussed recent price discovery discussions for the PIPE Financing,
noting there had been significant resistance to pricing the PIPE Financing at a substantial premium to the then-current market price ($2.41 as of close of trading on December 12, 2024), notwithstanding potential value attributable to the
proposed sale of the FYARRO business, from the unaffiliated third party investors leading such discussions with Jefferies. The PIPE Pricing Committee and representatives of Jefferies further discussed the foregoing matters and also, among other
things, the reported difficulty of pricing the PIPE Financing close to the estimated dissolution value due to the preclinical stage of the ADC Programs; the desire of unaffiliated third party investors to sign and announce the definitive agreement
for the sale of the FYARRO business, the License Agreement and the PIPE Financing simultaneously; the likely difficulty of holding the investor syndicate together for