Xoma to acquire Kinnate for between $2.3352-$2.5879 per share plus CVR

Kinnate Biopharma (KNTE) entered into a definitive merger agreement whereby XOMA Corporation (XOMA) will acquire Kinnate for a price per share of Kinnate common stock of between $2.3352 and $2.5879 in cash, consisting of a base cash price of $2.3352 per share and an additional cash amount of up to $0.2527 per share, plus one non-transferable contingent value right per share, representing the right to receive 100% of the net proceeds payable from any disposition of the Company’s investigational pan-RAF inhibitor, exarafenib, and/or any other pan-RAF inhibitors prior to the closing of the merger transaction and 85% of the net proceeds payable from any disposition of other Kinnate assets entered into prior to, or within one year from, closing and received within five years of closing pursuant to a definitive contingent value rights agreement. Following a thorough review process conducted by a special committee of disinterested and independent members of Kinnate’s Board of Directors, with the assistance of the Special Committee’s legal and financial advisors, all disinterested and independent members of the Board unanimously determined that the acquisition by XOMA is in the best interests of all Kinnate shareholders, and has, following the unanimous recommendation of the Special Committee, approved the Merger Agreement and related transactions. Pursuant and subject to the terms of the Merger Agreement, a wholly owned subsidiary of XOMA will commence a tender offer by March 4, 2024 to acquire all outstanding shares of Kinnate common stock. Closing of the Offer is subject to certain conditions, including the tender of Kinnate common stock representing at least a majority of the total number of outstanding shares, the availability of at least $120 million of cash at closing, and other customary closing conditions. Kinnate officers, directors and shareholders holding approximately 46% of Kinnate common stock have signed support agreements under which such parties have agreed to tender their shares in the Offer and support the merger transaction. The merger transaction is expected to close in the first half of 2024.