Company: TVRD
Filing Date: 2025-02-14
Form Type: S-4/A
Source: 0001104659-25-013053
Chunk: 271

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-02-14
Form: S-4/A
Chunk 271
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 in connection with the Merger because different attorneys at Cooley LLP, Cara’s regular outside legal counsel, represent Tvardi. Cara selected Mintz based on, among other things, Mintz’s reputation as a law firm with extensive expertise in public company representation and M&A and strategic transactions in the biopharmaceutical space.

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TABLE OF CONTENTS

On October 21, 2024, after discussions between Cara’s management team and Tvardi’s management team, Cara sent Tvardi a form of non-binding term sheet proposing, among other things, an economic split of the combined company that contemplated that Cara equityholders would hold 19.8% and Tvardi equityholders would hold 80.2% of the combined company on a treasury-stock method basis, not accounting for any future financing, and based on a Tvardi valuation of $210.0 million and a Cara valuation of $52 million (October 21 Term Sheet). The October 21 Term Sheet also contemplated a financing with a targeted subscription amount of $25.0 million, including a closing condition, for Cara’s benefit, of at least $25 million of financing having been raised and funded at Closing. The October 21 Term Sheet also contemplated an exclusivity period.

On October 25, 2024, Tvardi sent Cara a revised term sheet reflecting, among other things, (i) an economic split of the combined company that contemplated that Cara equityholders would hold 17% and Tvardi equityholders would hold 83% of the combined company on a treasury stock method basis, not accounting for any future financing, and based on a Tvardi valuation of $210.0 million and a Cara valuation of $43.0 million, (ii) the insertion of a “force the vote” provision and (iii) the insertion of a closing condition for Tvardi’s benefit, that Cara shall have a Cara net cash balance of at least $20 million at the closing of the Merger (October 25 Term Sheet). The October 25 Term Sheet also contemplated that the parties would share in the dilution associated with any future financings.

On October 28, 2024, representatives of Cara and Tvardi management and representatives of Piper Sandler reviewed Cara’s cash model.

On October 29, 2024, the Transaction Committee held a videoconference meeting with representatives of Cara management, Piper Sandler and Mintz also attending. At such meeting, the Transaction