Company: TVRD
Filing Date: 2025-05-30
Form Type: S-1
Source: 0001104659-25-054853
Chunk: 346

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-05-30
Form: S-1
Chunk 346
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 of the Convertible Notes and any unpaid accrued interest would have automatically converted into shares of the Company’s common stock at a conversion price equal to the lesser of (i)80% of the initial public offering price per share in the IPO and (ii) the price obtained by dividing $300.0million by the number of outstanding shares of the Company’s common stock immediately prior to the IPO.Conversion upon a reverse mergerIn the event that the Company consummated, while the Convertible Notes remained outstanding, a reverse merger transaction with a public traded company, the primary purposes of which transaction or series of related transactions is the public listing of the Company and pursuant to which the stockholders of the Company prior to such transactions shall beneficially own greater than50% of the surviving entity or the parent entity, then the outstanding principal amount of the Convertible Notes and any unpaid accrued interest would have automatically converted into common stock of such publicly traded company upon the closing of such reverse merger at a conversion price equal to the lesser of (i) the price obtained by dividing $300.0million by the number of outstanding
F-40

#### shares of common stock of the Company immediately prior to the consummation of the reverse merger or (ii)80% of the implied valuation of the combined company common stock in the Merger.Payout upon a change of controlIn the event that the Company consummated a change of control (as defined within the note purchase agreement to be events other than a reverse merger) while the Convertible Notes remained outstanding, the Company would have been obligated to repay the note holders in cash an amount equal to (i) the outstanding principal amount of the Convertible Notes plus any unpaid accrued interest on the original principal, plus (ii) a repayment premium equal to100% of the outstanding principal amount of the Convertible Notes.Maturity date conversionIn the event the Convertible Notes remained outstanding on or following the Maturity Date, the noteholders would have the option to elect to have the outstanding principal balance of the Convertible Notes and any unpaid accrued interest thereon convert into shares of the Company’s Series B Preferred Stock at a conversion price per share equal to $3.8095.The Convertible Notes were recorded at fair value of $28.3million upon issuance and were remeasured to the fair value of $35.0million and $30.1million as of March 31, 2025 and December 31, 2024, respectively. The change in the fair value of the Convertible