Company: WHWK
Filing Date: 2025-01-31
Form Type: DEFM14A
Source: 0001193125-25-018470
Chunk: 147

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-31
Form: DEFM14A
Chunk 147
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 board of directors held a meeting at which
members of the management team and representatives of Leerink Partners presented regarding the opportunity to in-license the ADC Programs from Wuxi Biologics. In particular, the management team discussed the
investment thesis for the ADC Programs; the process undertaken to identify such assets; details regarding such assets, including the characteristics, potential value proposition and risk profiles of each asset; due diligence matters, including geo-political considerations; transaction timing; the proposed non-binding term sheet and related financial and other deal terms, including exclusivity; and financing
considerations in connection with a potential transaction. Following discussion, Aadi’s board of directors authorized management to deliver to WuXi Biologics the proposed non-binding term sheet containing
the terms as presented at the meeting.

On August 9, 2024, representatives of Aadi shared an indication of interest and the non-binding term sheet (the “August 9 Term Sheet”) with representatives of WuXi Biologics.

On August 13,
2024, representatives of WuXi Biologics provided initial comments to the economic portions of the August 9 Term Sheet to representatives of Aadi, including a proposed increase of the upfront license fee to $50 million.

On August 16, 2024, Aadi’s board of directors held a meeting at which Aadi management presented interim analysis results for the PRECISION1 trial,
as well as an analysis by the Independent Data Monitoring Committee that the trial was unlikely to exceed an efficacy threshold necessary to support accelerated approval, a critical goal for the Phase 2 trial. Based on such interim data and
analysis, and to preserve Aadi’s cash, management recommended, among other things, that the PRECISION1 trial be discontinued, research and development expenses be eliminated, and employee headcount be reduced in order to preserve cash and
extend cash runway. Following discussion, Aadi’s board of directors approved this recommendation. At the same meeting, Aadi’s board of directors and management discussed Aadi’s delivery of the August 9 Draft Term Sheet and the
initial response of WuXi Biologics thereto. Aadi’s management team also provided an update on Aadi’s due diligence efforts to date regarding the ADC Programs and anticipated timelines for a potential transaction. Aadi’s board of
directors also discussed other value creation alternatives for stockholders following the cessation of the PRECISION1 trial, including a sale of the whole company, a sale of the FYARRO business with an
in-licensing of