Company: WHWK
Filing Date: 2025-01-31
Form Type: DEFM14A
Source: 0001193125-25-018470
Chunk: 89

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-31
Form: DEFM14A
Chunk 89
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 representatives of McDermott provided to representatives of Wilson Sonsini a revised draft of the Divestiture Agreement, which included a guarantee to Aadi of the payment obligations of Kaken under the Divestiture Agreement by Kaken Parent, and representatives of Wilson Sonsini and McDermott met via videoconference to discuss open issues regarding the Divestiture Agreement. Among other things, representatives of McDermott proposed a termination fee equal to $3.5 million; a provision that the termination fee would be payable in the event that Aadi stockholders fail to approve the Divestiture Agreement and also fail to approve other matters to be set forth in this proxy statement; and an escrow fund of $6.375 million, provided that within approximately 90 days after the closing, a portion of such amount would be subject to distribution to Aadi in an amount equal to the amount (if any) by which $1.375 million exceeds the amount of any purchase price adjustment in Kaken’s favor. On that same day, Bidder H submitted a non-bindingindication of interest to acquire the FYARRO assets for the following cash consideration: (i) a cash payment of $81.0 million at closing; and (ii) three potential one-timecommercial and regulatory milestone cash payments of up to $19.0 million in the aggregate (the “Bidder H December 17 Proposal”). The indication of interest stated that Bidder H’s offer would be subject to a financing contingency. Also on that same day, the Bidder B CEO contacted Dr. Lennon via telephone at approximately 4:30 p.m. Eastern time to notify him that Bidder B would increase its offer to $95 million and drop all closing conditions requiring amendments and negotiations of Aadi’s third party agreements, so long as Aadi and Bidder B entered into an exclusivity agreement no later than 12:59 a.m. Eastern time the following day (December 18) pursuant to which Aadi would be bound to exclusively negotiate with Bidder B through December 20, 2024. Representatives of Bidder B subsequently delivered to representatives of Leerink Partners an updated non-binding indication of interest and proposed form of exclusivity agreement reflecting the aforementioned terms (the “Bidder B December 17 Proposal”). The indication of interest stated that it was Bidder B’s final proposal. Later that same day, Aadi’s board of directors held a virtual meeting, with Aadi’s management team and representatives of Leerink Partners and Wilson Sonsini in attendance.