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EX-99.2 - EX-99.2 - TETRALOGIC PHARMACEUTICALS Corp | a14-10263_2ex99d2.htm |
EX-23.1 - EX-23.1 - TETRALOGIC PHARMACEUTICALS Corp | a14-10263_2ex23d1.htm |
EX-99.1 - EX-99.1 - TETRALOGIC PHARMACEUTICALS Corp | a14-10263_2ex99d1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 14, 2014
TetraLogic Pharmaceuticals Corporation
(Exact name of Registrant as specified in its charter)
Delaware |
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001-36208 |
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42-1604756 |
(State or Other Jurisdiction of Incorporation or Organization) |
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
343 Phoenixville Pike
Malvern, PA 19355
(610) 889-9900
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrants Principal Executive
Offices)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.01 Completion of Acquisition or Disposition of Assets.
Merger and Merger Agreement
On April 7, 2014, TetraLogic Pharmaceuticals Corporation, a Delaware corporation (TetraLogic), entered into a Merger Agreement (the Merger Agreement) with Shape Pharmaceuticals, Inc., a Delaware corporation (Shape Pharma), TLOG Acquisition Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the TetraLogic (Acquisition Sub), and Augustus Lawlor solely in his capacity as the representative of the equity holders of Shape Pharma.
On April 14, 2014 (the Closing Date), TetraLogic acquired by merger 100% of Shape Pharma, a privately-held pharmaceutical company developing suberohydroxamic acid phenyl ester (SHAPE). SHAPE is a novel, clinical-stage tissue-targeted HDAC inhibitor in a topical gel formulation to treat stage IA-IIA Cutaneous T-Cell Lymphoma. Pursuant to the terms and conditions of the Merger Agreement, Acquisition Sub merged with and into Shape Pharma, with Shape Pharma surviving as a wholly-owned subsidiary of TetraLogic (the Merger). The aggregate purchase price paid to the equity holders of Shape Pharma at closing was $13 million in cash, as adjusted for certain indebtedness, any working capital shortfalls and actual unpaid transaction expenses of Shape Pharma as of the Closing Date. The purchase price paid on the Closing Date was funded from existing cash on hand.
As additional consideration, TetraLogic is also required to pay the former equity holders of Shape Pharma specified amounts upon the achievement of certain future development and commercialization milestones, as well as tiered earn-outs on product sales.
The Merger Agreement contains customary representations, warranties and covenants of TetraLogic, Shape Pharma and Acquisition Sub. Subject to certain limitations, the former equity holders of Shape Pharma are required to indemnify TetraLogic for damages resulting from any breaches of Shape Pharmas representations, warranties and covenants made in the Merger Agreement and certain other matters.
The representations, warranties and covenants contained in the Merger Agreement were made only for the purposes of the Merger Agreement, were made as of specific dates, were made solely for the benefit of the parties to the Merger Agreement and may not have been intended to be statements of fact but, rather, as a method of allocating risk and governing the contractual rights and relationships among the parties to the Merger Agreement. The assertions embodied in those representations and warranties may be subject to important qualifications and limitations agreed to by TetraLogic and Shape Pharma in connection with negotiating their respective terms. Moreover, the representations and warranties may be subject to a contractual standard of materiality that may be different from what may be viewed as material to stockholders of TetraLogic. For the foregoing reasons, none of TetraLogics stockholders or any other person should rely on such representations and warranties, or any characterizations thereof, as statements of factual information at the time they were made or otherwise.
The above description of the Merger Agreement does not purport to be complete and is included solely as a summary of the material terms of the Merger Agreement, which shall be filed in a future filing of the Company with the United States Securities and Exchange Commission.
Material Relationships
Immediately prior to the Closing Date, HealthCare Ventures VIII, L.P., a Delaware limited partnership (HCVIII), owned approximately 71% of the outstanding equity interests of Shape Pharma. HealthCare Ventures VII, L.P., a Delaware limited partnership (HCVII), beneficially owns approximately 12% of TetraLogic. James H. Cavanaugh, Ph.D., Harold R. Werner, John W. Littlechild, Christopher Mirabelli, Ph.D. and Augustus Lawlor are each (i) a managing director of HealthCare Partners VIII, LLC, a Delaware limited liability company, which is the general partner of the general partner of HCVIII, and (ii) a general partner of HealthCare Partners VII, L.P., a Delaware limited partnership, which is the general partner of HCVII.
Douglas Onsi is (i) a member of the Board of Directors of TetraLogic, (ii) the Chief Executive Officer, President, Treasurer, Secretary and member of the Board of Directors of Shape Pharma, (iii) the Chairman of the Board of Directors of Shape Pharmas wholly-owned subsidiary Shape Pharmaceuticals Pty Ltd, an Australian corporation, (iv) a managing director of HCVII, (v) a limited partner of HealthCare Partners VII, L.P., the general partner of HCVII, and (vi) a limited partner of HCVIII.
The Merger Agreement and the Merger were duly approved and authorized by the Audit Committee and the Board of Directors of TetraLogic in accordance with the Companys Related Party Transaction Policy. Mr. Onsi, in his capacity as a member of the Board of Directors of TetraLogic, recused himself from all deliberations concerning the Merger and abstained from voting on the Merger.
Item 9.01 Financial Statements and Exhibits.
(a) Financial Statements of Business Acquired.
The audited Consolidated Financial Statements of Shape Pharmaceuticals, Inc. as of December 31, 2013 and 2012 and for each of the years in the three-year period ended December 31, 2013 and for the period from June 11, 2008 (inception) to December 31, 2013 are attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
(b) Pro Forma Financial Information.
The unaudited pro forma combined financial information which describes the effect of the Merger on the balance sheets and statements of operations and comprehensive loss of TetraLogic is attached as Exhibit 99.2 to this Current Report on Form 8-K and incorporated herein by reference.
(d) Exhibits.
The Exhibit Index attached to this Current Report on Form 8-K is incorporated herein by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: April 14, 2014 |
TetraLogic Pharmaceuticals Corporation | |
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By: |
/s/ Richard L. Sherman |
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Name: Richard L. Sherman |
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Title: Senior Vice President, Strategic Transactions, General Counsel and Secretary |
EXHIBIT INDEX
Exhibit Number |
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Description |
23.1 |
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Consent of EisnerAmper LLP, Independent Certified Public Accountants for Shape Pharmaceuticals, Inc. |
99.1 |
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Shape Pharmaceuticals, Inc. Consolidated Financial Statements as of December 31, 2013 and 2012 and for each of the years in the three-year period ended December 31, 2013 and for the period from June 11, 2008 (inception) to December 31, 2013 |
99.2 |
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Unaudited Pro Forma Consolidated Financial Information as of and for the year ended December 31, 2013 |