Company: LIMN
Filing Date: 2025-01-16
Form Type: POS AM
Source: 0001104659-25-003835
Chunk: 239

Company: Liminatus Pharma, Inc.
Filing Date: 2025-01-16
Form: POS AM
Chunk 239
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 approval of the Iris Board, the Business Combination Agreement was executed.

From November 1, 2022, the date on which the parties executed the Business Combination LOI, through November 30, 2022, the date on which the parties executed the Business Combination Agreement, certain material terms of the Business Combination Agreement changed. These changes were the result of (i) ordinary course negotiations among the parties to the Business Combination Agreement; and (ii) Iris’s continued due diligence efforts on Liminatus. Iris's approach toward the negotiations was informed through consultation with subject-matter experts. We have summarized the material changes below:

•

It was contemplated by the Business Combination LOI that the Sponsor would retain only a portion of the Founder Shares and private placement warrants (while forfeiting or transferring the remainder

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of each). The terms of the transaction changed over the course of negotiations and the Business Combination Agreement now states that the Sponsor will retain all of the Founder Shares, while forfeiting all of the private placement warrants.

•

It was contemplated by the Business Combination LOI that the Business Combination Agreement would include earnout provisions — providing that each of the Sponsor and Liminatus would receive shares following certain post-closing milestones being achieved. The parties ultimately agreed to not include the earnout provisions in the Business Combination Agreement.

•

The transaction terms evolved to require that at closing Iris shall repay indebtedness owed to the Sponsor out of amounts held in the Trust Account, with respect to any repayment for taxes, and the PIPE Investment, with respect to all other amounts owed to the Sponsor. This term was not contemplated by the Business Combination LOI.

•

The transaction terms evolved to provide that if the transaction expenses of Iris at the closing are less than $2,250,000, Liminatus will, at or promptly following the closing, pay $250,000 to the Sponsor. This was subsequently amended by the parties to require payment to the Sponsor if transaction expenses at closing are less than $5,000,000. This term was not included in the Business Combination LOI.

Other than as noted below, the enterprise value associated with Liminatus ($250,000,000) did not change throughout the course of the transaction. The enterprise value was arrived at by Iris through: (i) research and analysis of comparable companies (with respect to size, maturity, financial status, and research targets), and (ii) assistance from third-party advisors, consultants and experts. This valuation was derived