Support Agreements and Lock-Up Agreements
Concurrently with the execution of the Merger Agreement, (i) certain stockholders of Dianthus (solely in their respective capacities as Dianthus stockholders) holding approximately 65.7% of the outstanding shares of Dianthus capital stock have entered into support agreements with Magenta and Dianthus to vote all of their shares of Dianthus capital stock in favor of the adoption and approval of the Merger Agreement and the transactions contemplated thereby and against any alternative acquisition proposals (the “Dianthus Support Agreements”) and (ii) certain stockholders of Magenta holding approximately 6.9% of the outstanding shares of Magenta common stock have entered into support agreements with Magenta and Dianthus to vote all of their shares of Magenta common stock in favor of the Magenta Voting Proposals and against any alternative acquisition proposals (the “Magenta Support Agreements,” and, together with the Dianthus Support Agreements, the “Support Agreements”).
Concurrently with the execution of the Merger Agreement, certain executive officers, directors and stockholders of Magenta and Dianthus have entered into lock-up agreements (the “Lock-Up Agreements”) pursuant to which, subject to specified exceptions, they have agreed not to transfer their shares of Magenta common stock for the 180-day period following the closing of the Merger.
The preceding summaries of the Merger Agreement, the Support Agreements and the Lock-Up Agreements do not purport to be complete and are qualified in their entirety by reference to the Merger Agreement, the form of Dianthus Support Agreement, the form of Magenta Support Agreement, the form of Lock-Up Agreement and the form of Contingent Value Rights Agreement, which are filed as Exhibits 2.1, 10.1, 10.2, 10.3 and 10.4, respectively, to this Current Report on Form 8-K and which are incorporated herein by reference. The Merger Agreement has been attached as an exhibit to this Current Report on Form 8-K to provide investors and securityholders with information regarding its terms. It is not intended to provide any other factual information about Dianthus or Magenta or to modify or supplement any factual disclosures about Magenta in its public reports filed with the SEC. The Merger Agreement includes representations, warranties and covenants of Dianthus, Magenta and Merger Sub made solely for the purpose of the Merger Agreement and solely for the benefit of the parties thereto in connection with the negotiated terms of the Merger Agreement. Investors should not rely on the representations, warranties and covenants in the Merger Agreement or any descriptions thereof as characterizations of the actual state of facts or conditions of Dianthus, Magenta or any of their respective affiliates. Moreover, certain of those representations and warranties may not be accurate or complete as of any specified date, may be subject to a contractual standard of materiality different from those generally applicable to SEC filings or may have been used for purposes of allocating risk among the parties to the Merger Agreement, rather than establishing matters of fact.
Stockholder Rights Agreement
On May 2, 2023, the Board approved an Amendment No. 1 (the “Amendment No. 1”) to the Stockholder Rights Agreement by and between Magenta and Computershare Trust Company, N.A. as rights agent, dated March 31, 2023 (the “Rights Agreement”), effective as of May 2, 2023. Amendment No. 1 prevents the approval, execution, delivery or performance of the Merger Agreement, or the consummation prior to the termination of the Merger Agreement of the Merger or any of the other transactions contemplated by the Merger Agreement in accordance with its terms, from, among other things, (i) resulting in a Stock Acquisition Date or Distribution Date (each as defined in the Rights Agreement) or permitting the Rights (as defined in the Rights Agreement) to be exercised or exchanged, (ii) constituting a Section 11(a)(ii) Event or a Section 13 Event (each as defined in the Rights Agreement), and (iii) causing Magenta, Merger Sub or their respective affiliates to be deemed an Acquiring Person (as defined in the Rights Agreement) for any purpose under the Rights Agreement.
The foregoing description of Amendment No. 1 is only a summary, does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement and Amendment No. 1, copies of which are attached as Exhibit 4.1 and Exhibit 4.2, respectively, and are incorporated herein by reference.
Item 3.02. | Unregistered Sales of Equity Securities. |
To the extent required by this Item, the information included in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
Item 3.03. | Material Modification to Rights of Security Holders. |
The information set forth in Item 1.01 under the heading “Stockholder Rights Agreement” is incorporated by reference into this Item 3.03.