Company: LGNZZ
Filing Date: 2025-08-14
Form Type: 8-K
Source: 0001193125-25-180841
Chunk: 4

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-08-14
Form: 8-K
Item: Item 1.01
Chunk 4
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The Company’s net proceeds from the offering were approximately $445.1 million, after deducting the initial purchasers’ discounts and commissions and the estimated offering expenses payable by the Company. The Company used approximately $45.9 million of the net proceeds to pay the cost of the convertible note hedge transactions described below (after such cost was partially offset by the proceeds to the Company from the sale of the warrants under the warrant transactions described below). In addition, the Company used approximately $15.0 million of the net proceeds from the offering, together with cash on hand, to repurchase 102,034 shares of Common Stock at a price of $147.01 per share, which is equal to the last reported price per share of Common Stock as of the date of pricing of the Notes, from certain purchasers of the Notes in privately negotiated transactions effected through one of the initial purchasers or an affiliate thereof concurrently with the pricing of the Notes.

Convertible Note Hedge Transactions

On August 11, 2025, concurrently with the pricing of the Notes, and August 12, 2025, concurrently with the initial purchasers’ exercise of the option to purchase additional Notes, the Company entered into privately negotiated convertible note hedge transactions (the “ Purchased Options”) with certain of the initial purchasers or affiliates thereof and certain other financial institutions (the “ Counterparties”). The Purchased Options cover, subject to anti-dilutionadjustments substantially similar to those applicable to the Notes, approximately 2.36 million shares of Common Stock, which is equal to the number of shares of Common Stock that will initially underlie the Notes, at an initial strike price of approximately $194.79 per share. The Purchased Options will expire upon the maturity of the Notes, if not earlier exercised or terminated. A copy of the form of confirmation for the Purchased Options is attached hereto as Exhibit 10.1 and is incorporated herein by reference. The Purchased Options are expected generally to reduce the potential dilution to the Common Stock upon any conversion of Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Notes, as the case may be. The Purchased Options are separate transactions, entered into by the Company with the Counterparties, and are not part of the terms of the Notes.

Warrant Transactions

Separately from the Purchased Options, on August 11, 2025, concurrently with the pricing of the Notes, and August 12, 2025, concurrently with the initial purchasers