Company: TVRD
Filing Date: 2025-02-14
Form Type: 424B3
Source: 0001104659-25-014310
Chunk: 278

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-02-14
Form: 424B3
Chunk 278
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 the U.S. and global economies, including the downward trend in the biopharmaceutical financial markets;

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TABLE OF CONTENTS

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the risks associated with Cara remaining a standalone company pursuing a limited pipeline including liquidity needs and cash-burn related to, among other things, funding Cara’s development pipeline;

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the risks associated with the expected length of the program timelines of Cara’s current assets, including KOURAGE program timelines, and business development opportunities and the financing sources available to Cara based on such timelines;

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the risks associated with Cara’s ability to attract and retain talent;

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the risks associated with the need to obtain substantial amounts of financing to continue its operations and to continue the development of its current programs if Cara were to remain an independent company and the unlikelihood that such financing would be able to be obtained; and

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the risks and delays associated with, and uncertain value and costs to Cara’s stockholders of, liquidating Cara, including, without limitation, the uncertainties of continuing cash burn while contingent liabilities are resolved and uncertainty of timing of release of cash until contingent liabilities are resolved.

The Cara Board also reviewed the terms and conditions of the Merger Agreement and the Contemplated Transactions, as well as the safeguards and protective provisions included therein intended to mitigate risks, including:

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the initial estimated Exchange Ratio used to establish the number of shares of Cara common stock to be issued to Tvardi’s stockholders in the Merger was determined based on the relative valuations of Cara and Tvardi and an implied combined company valuation, and thus the relative percentage ownership of Cara’s stockholders, Tvardi’s stockholders and the Convertible Note holders immediately following the completion of the Merger is subject to change, including based on the amount of Cara Net Cash at Closing to the extent it is greater than $23.125 million or less than $22.875 million, subject to certain exceptions as more fully described below under the caption “ The Merger — Exchange Ratio ”;

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a dollar-for-dollar adjustment to Cara Net Cash for amounts Cara will receive for the sale of its legacy assets, if successful, on or about the anticipated Closing Date (the Anticipated Closing Date);

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the limited number and nature of the conditions to Tvardi’s obligation to consummate the Merger and the limited risk of non-satisfaction of such conditions as well as the likelihood that the Merger will be consummated on a timely basis;

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the ability of Cara to consider certain unsolicited Acquisition Prop