Company: LIMN
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001104659-25-006325
Chunk: 239

Company: Liminatus Pharma, Inc.
Filing Date: 2025-01-27
Form: POS AM
Chunk 239
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 This term was not contemplated by the Business Combination LOI.

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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 using a comprehensive approach. Following the TDT License Termination, the enterprise value associated with Liminatus was changed to $175,000,000. This valuation 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 using a comprehensive approach.

As Liminatus does not yet have revenues, the cash flows prior to approval of any treatment or vaccine will be negative. That means the “standard” valuation multiples like enterprise value to EBITDA or price to earnings are less relevant. There are some alternative multiples, such as enterprise value to invested research and development, which are essentially cost-based valuations. Iris believes cost based valuations are not good indicators of future value for biotechnology companies. The comparative valuation methodology is a popular methodology which utilizes public market comparables, or comparable M&A transactions, but because Iris believes most biotechnology companies are idiosyncratic, Iris looked at a range of criteria to find likeness over exact matches.

In light of these differences, Iris sought assistance from a multitude of third-party advisors, consultants and experts, whose specialized knowledge of the sector and insights bolstered the valuation process. Iris believes that these external collaborators brought diverse perspectives and extensive experience to the table, ensuring that the valuation of Liminatus was robust and defensible. Iris undertook the following high-level view to estimate value ranges using two methods:

First, a research and analysis of listed comparable companies was conducted, scrutinizing factors such as stage of development