The foregoing description of the Lock-up Agreements does not purport to be complete and is qualified in its entirety by reference to the form of the Lock-up Agreement, which is provided as Exhibit B to the Merger Agreement, which is filed as Exhibit 99.2 to this Schedule 13D and incorporated herein by reference.
Contingent Value Rights Agreement
The Merger Agreement contemplated that within 30 days following the Closing, miRagen and the Rights Agent (as defined therein) would enter into a contingent value rights agreement (the “CVR Agreement”), pursuant to which each holder of Common Stock as of the close of business on November 6, 2020, other than former stockholders of Viridian, shall be entitled to one contractual contingent value right issued by miRagen, subject to and in accordance with the terms and conditions of the CVR Agreement, for each share of Common Stock held by such holder. Each contingent value right shall entitle the holder thereof to receive certain cash payments from the net proceeds, if any, related to the disposition of miRagen’s legacy programs to develop product candidates that modulate microRNAs within three years following the closing of the Merger. The contingent value rights are not transferable, except in certain limited circumstances as will be provided in the CVR Agreement, will not be certificated or evidenced by any instrument and will not be registered with the SEC or listed for trading on any exchange.
The foregoing description of the CVR Agreement does not purport to be complete and is qualified in its entirety by reference to the form of the CVR Agreement, which is provided as Exhibit E to the Merger Agreement, which is filed as Exhibit 99.2 to this Schedule 13D and incorporated herein by reference.
Private Placement and Securities Purchase Agreement
On October 27, 2020, miRagen entered into a Securities Purchase Agreement (the “Purchase Agreement”) with the purchasers named therein (the “Investors”).
Pursuant to the Purchase Agreement, miRagen agreed to sell an aggregate of approximately 195,290 shares of Series A Preferred Stock for an aggregate purchase price of $90,997,049 (collectively, the “Financing”). Each share of Series A Preferred Stock is convertible into 66.67 shares of Common Stock. The powers, preferences, rights, qualifications, limitations and restrictions applicable to the Series A Preferred Stock are set forth in the Certificate of Designation.
The closing of the Financing occurred on October 30, 2020 (the “Financing Closing Date”).
The foregoing summary of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the Purchase Agreement, which is filed as Exhibit 99.4 to this Schedule 13D.
Registration Rights Agreement
On the Financing Closing Date, in connection with the Purchase Agreement, miRagen entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with the Investors. Pursuant to the Registration Rights Agreement, miRagen prepared and filed a resale registration statement with the SEC on December 15, 2020. This registration statement was declared effective by the SEC on December 22, 2020.
miRagen has also agreed to, among other things, indemnify the Investors, their officers, directors, members, employees and agents, successors and assigns under the registration statement from certain liabilities and pay all fees and expenses (excluding any legal fees of the selling holder(s), and any underwriting discounts and selling commissions) incident to miRagen’s obligations under the Registration Rights Agreement.
The Offering is exempt from registration pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder, as a transaction by an issuer not involving a public offering. The Investors have acquired the securities for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends have been affixed to the securities issued in this transaction.
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