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Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.
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Third-party tender offer subject to Rule 14d-1.
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Issuer tender offer subject to Rule 13e-4.
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Going-private transaction subject to Rule 13e-3.
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Amendment to Schedule 13D under Rule 13d-2.
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Rule 13e-4(i) (Cross-Border Issuer Tender Offer)
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Rule 14d-1(d) (Cross-Border Third-Party Tender Offer)
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(1) |
The disclosure under the heading “What is the CVR and how does it work?” on pages 3 and 4 and of the Offer to Purchase and under the heading “CVR Agreement” on pages 49 and 48 of the Offer to Purchase are each hereby amended and
supplemented by amending and restating the first ten paragraphs and the first eight paragraphs, respectively, as follows:
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The CVRs represent the right to receive contingent payments in cash of up to $140,000,000 in the aggregate, or approximately $2.5444 per share, without interest and less any applicable tax
withholding (collectively, the “Milestone Payments” and each individually, a “Milestone Payment”) payable to the Rights Agent for the benefit of the holders of CVRs upon the achievement of a specified milestone and otherwise in
accordance with the Merger Agreement (each such milestone, a “Milestone”), as follows:
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an aggregate milestone payment of $15,000,000, or approximately $0.2747 per share, payable upon the completion of the last patient’s last visit in Zynerba’s RECONNECT (ZYN2-CL-033) clinical
trial (the “Pivotal Study”) for Zygel™ (ZYN002) (the “Product”) by or before June 30, 2026;
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upon the completion of the Pivotal Study and a finding that the data from the Pivotal Study meets the primary end point(s) with statistical significance as set forth in the protocol of the Pivotal Study (“Milestone 2”), an aggregate
milestone payment of :
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an aggregate milestone payment of $35,000,000, or approximately $0.6389 per share, payable upon the achievement of approval from the U.S. Food and Drug Administration of the New Drug
Application (“NDA Approval”) with respect to the Product in Fragile X syndrome (“Milestone 3”) provided that Milestone 3 is achieved prior to the expiration of the CVR Agreement on December
31, 2040;
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an aggregate milestone payment of $15,000,000, or approximately $0.2702 per share, payable upon the achievement of NDA Approval with respect to the Product in the Second Indication (as
defined in the CVR Agreement) provided that such Milestone is achieved prior to the expiration of the CVR Agreement on December 31, 2040;
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an aggregate milestone payment of $15,000,000, or approximately $0.2702 per share, payable upon the achievement of worldwide aggregate Net Sales (as defined in the CVR Agreement) of the
Product (inclusive of all indications) of at least $250,000,000, calculated on a cumulative basis for all Calendar Years (as defined in the CVR Agreement) (or portion thereof) if Milestone 3 is achieved by or before December 31, 2030 (“Milestone
5”); and
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an aggregate milestone payment of $30,000,000, or approximately $0.5405 per share, payable upon the achievement of worldwide aggregate Net Sales of the Product (inclusive of all Indications)
of at least $500,000,000, calculated on a cumulative basis for all Calendar Years (or portion thereof) and inclusive of all Net Sales applied toward achievement of Milestone 5 if Milestone 3 is achieved by or before December 31, 2030.
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The CVR Agreement and the rights of holders of CVRs to receive Milestone Payments thereunder will terminate automatically on December 31, 2040, and no Milestone may be achieved following such date.
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Each holder of a CVR and each holder of certain Company Stock Options (in accordance with the terms of the Merger Agreement) are entitled to the Milestone Payments, in each case in accordance with the terms of the CVR Agreement and the
Merger Agreement.
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For each Milestone, the amount payable per CVR and to each Company Stock Option entitled to payment under Section 3.7(b) of the Merger Agreement (the “Out-of-the-Money Option”) will be calculated by adding the amount by which the
aggregate exercise price of all Out-of-the-Money Options exceeds the aggregate Closing Amount for such Out-of-the-Money Options to the applicable milestone payment, and dividing that amount by the “Fully Diluted Share Amount” at the time of
achievement of the Milestone. “Fully Diluted Share Amount” means (1) the sum of the total number of Shares outstanding prior to the Effective Time plus (2) the total number of shares of common
stock of Zynerba issuable pursuant to In-the-Money Company Stock Options plus (3) the total number of shares of common stock of Zynerba issuable pursuant to Company Restricted Stock Awards plus (4) the total number of shares of common stock of Zynerba issuable pursuant to Out-of-the-Money Options with respect to such Milestone. The approximated per share
amounts disclosed per Milestone above were calculated in accordance with such methodology.
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(2) |
Exhibit (d)(1) of “Item 12. Exhibits.” of the Schedule TO is amended and supplemented by amending and restating the exhibit reference as follows:
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(d)(1) |
Agreement and Plan of Merger, dated as of August 14, 2023, by and among Harmony Biosciences Holdings, Inc., Xylophone Acquisition Corp. and Zynerba Pharmaceuticals, Inc. (incorporated herein by reference to Exhibit 2.1 to the Current Report on Form 8-K/A filed with the SEC on September 14, 2023).
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Date: September 14, 2023
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Xylophone Acquisition Corp.
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By:
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/s/ Christian Ulrich
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Name:
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Christian Ulrich
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Title:
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Secretary
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Harmony Biosciences Holdings, Inc.
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By:
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/s/ Christian Ulrich
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Name:
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Christian Ulrich
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Title:
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General Counsel and Corporate Secretary
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