Company: WHWK
Filing Date: 2025-01-31
Form Type: DEFM14A
Source: 0001193125-25-018470
Chunk: 157

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-31
Form: DEFM14A
Chunk 157
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 estimated value of $80 million for the potential sale of the FYARRO business. Aadi’s management also presented and discussed with the PIPE Pricing Committee: (i) an updated dissolution model (assuming an
estimated value of $80 million for the sale of the FYARRO business) and related key assumptions (including those related to the estimated winddown period and operating expenses during such period), noting estimated cash dissolution per share
values of $3.68 and $3.32, assuming initial distribution amounts of 75% and 50%, respectively, of Aadi’s cash following the sale of the FYARRO business; (ii) an analysis of the initial bid from Kaken Parent, which was an offer to acquire
all 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